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What is rate of return over the year

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Reference no: EM132821417

You buy a bond for $997 that has a coupon rate of 6.30% and a maturity of 6-years. A year later, the bond price is $1,192. (Assume a face value of $1,000 and annual coupon payments.)

Problem a. What is the new yield to maturity on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Problem b. What is your rate of return over the year?

Reference no: EM132821417

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