Realized yield: Josh Kavern bought 10-year, 12 percent coupon bonds issued by the U.S. Treasury three years

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Realized yield: Josh Kavern bought 10-year, 12 percent coupon bonds issued by the U.S. Treasury three years ago at $913.44.

If he sells these bonds, for which he paid the face value of $1,000, at the current price of $804.59, what is his realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments.

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Fundamentals Of Corporate Finance

ISBN: 9781119795438

5th Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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