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. A bond has a par value of $1,000, a time to maturity of 20 years, a coupon rate of 10% with interest paid annually,
. A bond has a par value of $1,000, a time to maturity of 20 years, a coupon rate of 10% with interest paid annually, a current price of $850. You plan to hold it for 10 years. Your forecast is that the bonds yield to maturity will be 12% when it is sold. If interest payments are reinvested at 10% for 10 years, the realized compound yield for the holding period of 10 years must be ?
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