Problem:
At the beginning of the year, you bought a $1,000 par value corporate bond with a 6 percent annual coupon rate and a 10-year maturity date. When you bought the bond, it had an expected yield to maturity of 8 percent. Today the bond sells for $1,060.
Required:
Question 1: What did you pay for the bond?
Question 2: If you sold the bond at the end of the year, what would be your one-period return on the investment?
Note: Please explain comprehensively and give step by step solution.