What will be the rate of return on investment in bond

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Reference no: EM132033207

Last year, a company issued a 10-year annual coupon bond at par value with a yield to maturity of 10.20%. The current yield to maturity has increased to 10.50%. Investors anticipate another increase in yield to maturity over the next 12 months to 10.80%. If the investors forecast accurately, what will be the rate of return on an investment in this bond over the next year? (Do not round intermediate calculations. Enter your final answer as a percent rounded to 2 decimal places.)

Reference no: EM132033207

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