Bonds, Bond Prices, Interest Rates, and the Risk and Term Structure of ...

a maturity of 30 years, and a current yield to maturity of 10 percent I The current price of this bond is 1000 1.130 = 57.31. I Suppose that interest rates stay the same after a year. Then the bond has a price of 1000 1.129 = 63.04 I Since there is no coupon payment, your one year holding period return (holding period refers to length of time ... ................
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