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A bond is selling for $ 1 0 2 9 . The coupon rate is 7 . 8 % . It has 1 8 -
A bond is selling for $ The coupon rate is It has years till maturity, with semiannual compounding. What is the yieldtomaturity YTM calculate the realized compound yield RCY with a reinvestment rate of What problem does the RCY correct and why is this important? If the investor believes interest rates are going to increase, is this a good bond choice? Think PriceYield curve. please show work and steps.
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