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A bond has a term to maturity of 15 years, a coupon of 12%, and its current market price is $92.4. Assume coupon interest is
A bond has a term to maturity of 15 years, a coupon of 12%, and its current market price is $92.4. Assume coupon interest is paid semiannually and the face value is $100.
Determine the total income received from the bond and the realized return, assuming that coupon payments were reinvested at the YTM and the bond was held to maturity.
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