36. Realized Yields (LO2, CFA6) Assume you purchase (at par) a 10-year bond with a 6 percent...

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36. Realized Yields (LO2, CFA6) Assume you purchase (at par) a 10-year bond with a 6 percent coupon and a $1,000 face value. Suppose you are only able to reinvest the coupons at a rate of 4 percent. If you sell the bond after five years when the yield to maturity is 7 percent, what is your realized yield?

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Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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