I am having some problems with this question. Aside from the anser, I would like

Question

I am having some problems with this question. Aside from the anser, I would like to see the steps so that I may do this on my own in the future. Thank you for taking the time to help.

Last year, Joan purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 8.56%. If Joan sold the bond today for $939.96, what rate of return would she have earned for the past year? Round your answer to two decimal places.

Explanation / Answer

One year back

Price = 80/(1+8.56%) +80/(1+8.56%)^2 + 80/(1+8.56%)^3 ...1080/(1+8.56%)^10

=$963.35

rate of return =( 939.96 +80 - 963.35)/963.35 =

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