14 - 17 . Five years ago Diana Troy invested $ 1 , 000 in a $ 1 , 000 par , 10 - year maturity , 9 percent annual coupon rate putable bond , which can be redeemed at $900 after five years . If the current required rate of return on similar bonds is 14 percent , should Diana redeem the bond ? What is the realized rate of return after redeeming ? If Diana reinvests the sum in a $1 , 000 par , five years to maturity , 13 percent annual coupon rate bond selling at $900 and holds it until maturity , what is her realized rate of return over the next five years ? What is her realized rate of return over the entire 10 years