For a coupon bond with coupon rate of 10% maturing in 2 years and selling at its face value. If the yield to maturity is 10% at the beginning of the year, and drop to 5% at the end of the year. What is the annual rate of return of this coupon bond ?
2026年09月23日 21:49
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网友（1）：
Assuming the face value of bond is 100 Bond value now: 100
Bond value at end of the year: 110/1.05=104.76 Coupon received at end of the year: 10%*100=10 Rate of return = (104.76+10)/100 - 1= 14.76%
