Question

Suppose that you just bought a​ four-year ​$1000 coupon bond with a coupon rate of 5.7​%...

Suppose that you just bought a​ four-year ​$1000 coupon bond with a coupon rate of 5.7​% when the market interest rate is 5.7​%. One year​ later, the market interest rate falls to 3.7​%. The rate of return earned on the bond during the year was nothing​( )%. ​(Round your response to two decimal​ places.)

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Answer #1

Rate of return was 11.28%


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