Lamar Baily purchased a 7% coupon corporate bond that matured in 10 years and paid...
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Lamar Baily purchased a 7% coupon corporate bond that matured in 10 years and paid interest semiannually. He paid $2,800 and six months later, immediately following an interest payment, he sold the bond. At the time of sale, the market interest rate on bonds of this type was 6%. What was Baily's selling price? What was Baily's rate of return for the six months?
*An expert comment was left stating this problem required more information. I also thought so...hence the reason for the question. Could someone please answer this if there is enough info or else leave another comment if you also agree this question is incomplete? Thanks!
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