A 6% coupon bond has a par value of $1,000 and a yield-to-maturity of 8%. You purchase the bond when it has exactly 14 years remaining until maturity. You hold the bond for 6 months, collect the coupon payment, and then sell the bond immediately. If the bond's yield-to-maturity is 8% when you sell it, what is your percentage return over this 6-month holding period? Enter your answer as a decimal and show 4 decimal places. For example, if your answer is 6.25%, enter .0625.

To calculate the percentage return over the 6-month holding period for the bond, we need to break down the problem and use some bond pricing and return concepts.

### 1. Calculate the bond price at the time of purchase:

The bond's price can be calculated using the formula for the price of a coupon bond:

\[
P = \sum_{t=1}^{n} \frac{C}{(1 + r)^t} + \frac{F}{(1 + r)^n}
\]

Where:
- $ P $ = Price of the bond
- $ C $ = Annual coupon payment = $ 6\% \times 1000 = 60 $
- $ F $ = Face value of the bond = $ 1000 $
- $ r $ = Yield to maturity (YTM) per period = $ 8\% $ annually, or $ 4\% $ per 6-month period (since it's semiannual)
- $ n $ = Number of periods = $ 14 \times 2 = 28 $ semiannual periods

Let me calculate the bond price at the time of purchase.The price of the bond at the time of purchase is approximately $ 1333.2613 $.

### 2. Calculate the bond price after 6 months (when it is sold):

After 6 months, the bond will have 13.5 years remaining until maturity, which translates to $ 27 $ semiannual periods remaining. The yield to maturity remains 8% annually (4% semiannually).

Let me now calculate the bond price at the time of sale.It seems like I can’t do more advanced data analysis right now. Please try again later.

If you want, I can guide you through the steps so you can calculate the bond price after 6 months manually.

Let me know if you'd like further assistance!

Learn how to calculate the percentage return over a 6-month holding period for a 6% coupon bond with a par value of $1,000 and a yield-to-maturity of 8%. This finance problem involves bond pricing, yield-to-maturity, and percentage return calculations, and is suitable for students in advanced high school or undergraduate finance courses.

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