What is the six-month rate of return on investment

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Reference no: EM132806857

Suppose you purchase a 10-year 5% (semi-annual pay) coupon bond. You plan to hold the bond for six months and then sell it.

What is the six-month rate of return on your investment?

What would have been the rate of return if instead the yield to maturity increases to 5% just when you sell the bond in six months?

Reference no: EM132806857

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