What was your total return on the bond

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Question - You purchased a USD1000 par value bond of Tiger Century Entertainment, twenty eight-years to maturity, 8% semi-annual coupon bond, yield to maturity at the time of purchase was 6%. Immediately after the purchase, the yield to maturity of the bond went up to 9 % (i.e., you reinvest coupons at the new yield). If you sold the bond after holding it for 15 years, what was your total return on the bond? Assume that at the time of sale, the yield-to-maturity was 13%.

Reference no: EM132883662

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