What would be one-period return on the investment

Reference no: EM131793777

Question: At the beginning of the year, you bought a $1,000 par corporate bond with an annual coupon rate of 14 percent and a maturity value when you bought the bond, it had an expected yield to maturity of 9 percent. Today the bond sells for $1, 640.

a. What did you pay for the bond?

b. If you sold the bond at the end of the year, what would be your one-period return on the investment?

Assume that you did not receive any interest payment during the holding period.

a. The price you paid for the bond is $

b. If you sold the bond today, your one-period return on the investment is %

Reference no: EM131793777

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