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 %