Problem: Last year, Joan purchased a $1,000 face value corporate bond with a 7% annual coupon rate and a 25-year maturity. At the time of the purchase, it had an expected yield to maturity of 13.99%.
Required:
Question: If Joan sold the bond today for $988.63, what rate of return would she have earned for the past year?
Note: Please show how you came up with the solution.