What rate of return would she have earned for the past year

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Reference no: EM131968952

Last year Janet purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 7.58%.

If Janet sold the bond today for $1,023.33, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

(Previously asked on Transtutors and answers wrong... it is not 3.58)

Reference no: EM131968952

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