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A 5-year, $1,000 face bond with a 3% coupon is currently selling with a 4% YTM (yield to maturity). Purchase price of the bond: $955.48

A 5-year, $1,000 face bond with a 3% coupon is currently selling with a 4% YTM (yield to maturity). Purchase price of the bond: $955.48

Immediately after you purchase the bond, the reinvestment rate in the market drops to 3%. What is your realized yield on your bond investment? 4.12%, 4.56%, 4%, 3.94%

What is the duration of the bond? 4.71, 4.95, 5, 4.83

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