Suppose you're holding a 5% coupon bond maturing in 1 year with a yield to maturity of 15%. If the interest rate on a 1-year bond rises from 15-20% over the course of the year, what's the yearly return on the bond you're holding?

Answer is 15%.

Any explination?

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Darryn D'SouzaLv10

29 Sep 2019

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