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Suppose that you are considering investing in a four-year bond that has a face value of $1000 and a coupon rate of 5.) If the market interest rate on...
$
The total return on the bond was $
if another investor had bought the bond a year ago for the amount that was calculated in? (b), the total return would have been %
d.) Now suppose that two years have gone by since you bought the bond and that you have received the first two coupon payments. At this? point, the market interest rate on similar bonds unexpectedly rises to
9?%.
The price of the bond another investor will be willing to pay is $. (Round your response to the nearest? cent.)
The total return on the bond was %. (Round your response to two decimal? places.)
Suppose that another investor had bought the bond at the price you calculated in? (c).
The total return would have been
%. (Round your response to two decimal? places.)