Today, you buy a 12 year, 10% coupon bond for $980. One year later, you sell the bond when rates are 13%. What is your 1 year rate of return on this investment? Answer to 4 decimal places, for example 0.1043.
Last year, you purchased a bond that had 6 years to maturity and a coupon rate of 11% when interest rates were 5%.
One year later you sell the bond when interest rates are 11%.
What was your one year rate of return on this investment?
Enter your answer in decimals (not percent) and round your answer to 4 decimal places. For example, 0.1234
