What is your bonds rate of return over the year

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Reference no: EM13918116

You buy a(n) 7.8% coupon, 7-year maturity bond for $982. A year later, the bond price is $1,152. Assume coupons are paid once a year and the face value is $1,000.

part a) What is the new yield to maturity on the bond (one year from now)?

part b)What is your bond's rate of return over the year?

Reference no: EM13918116

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