coupon bond
Suppose that on January 1, 2011, you purchased a coupon bond with the following characteristics:
Face value: $1,000
Coupon rate: 8 3/8
Current yield: 7.5%
Maturity date: 2015
If the bond is selling for $850 on January 1, 2012, then what was your rate of return on this bond during the holding period of calendar year 2011?
coupon bond