Question

Exactly 7 years ago, you bought a $1,000 par value bond paying 6% coupons on a semiannual basis for $982.06. Over the 7 years, you reinvested the coupon payments and received a total of $66.78. You believe you will be able to sell the bond today for $1,053.3. What is the total annual return of your bond? Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%). 

          Exactly 7 years ago, you bought a $1,000 par value bond paying 6% coupons on a semiannual basis for $982.06.  Over the 7 years, you reinvested the coupon payments and received a total of $66.78.  You believe you will be able to sell the bond today for $1,053.3.  What is the total annual return of your bond?  Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%).
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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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Exactly 7 years ago, you bought a $1,000 par value bond paying 6% coupons on a semiannual basis for $982.06. Over the 7 years, you reinvested the coupon payments and received a total of $66.78. You believe you will be able to sell the bond today for $1,053.3. What is the total annual return of your bond? Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%).
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Transcript

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00:01 What was the total return for the past year? we can use our formula that our bond price is our face value divided by 1 plus interest over m to the m times n power.
00:13 Here our face value is 1000 divided by 1 plus 0 .0076 or 0 .0765 over m.
00:29 M is equal to 2 times 14.
00:35 Let's go ahead and calculate this bond price.
00:38 So 1000 divided by 1 plus 0 .0765 divided by 2 to the 2 times 14 power...
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