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1.You bought a $1,000, 20-year 12% annual coupon bond at issue. Immediately thereafter the YTM had changed to 10%. Find the total interest at the
1.You bought a $1,000, 20-year 12% annual coupon bond at issue. Immediately thereafter the YTM had changed to 10%. Find the total interest at the end of year 5. Express your answer in dollar and cents.
a. Find the interest-on-interest at the end of year 5.
b. Find the capital gain at the end of year 5.
c. Find thetotal income at the end of year 5.
d. Find the realized return at the end of year 5. Express your answer as a percentage with 3 digits
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