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2- Which of the following is used to compute the realized yield on a 10% coupon 5 year maturity bond purchased at 900 and sold
2- Which of the following is used to compute the realized yield on a 10% coupon 5 year maturity bond purchased at 900 and sold for 950k at the end of the 3rd year? a) 900 = ( 100/(1+ k)3) +(100/(1+k)2 )+ (1950/(1+k)!) b) 1000 = ( 100/(1+ k)3 ) +(100/(1+k)2) +(1050/(1+k)? ) c) 900 = ( 100/(1+ k)') +(100/(1+k)2 ) +(1050/(1+k) 3 ) d) O 950 = ( 100/(1+ k)?) +(100/(1+)2) +(1000/(1+k)) Leave blank
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