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A bond rated AAA has a current market price of $800, a coupon interest rate of 10%, and a 10-year maturity. Interest is paid SEMIANNUALLY.

A bond rated AAA has a current market price of $800, a coupon interest rate of 10%, and a 10-year maturity. Interest is paid SEMIANNUALLY. If the bond's par value is $1,000, what is its yield to maturity (YTM)?

A. 6.82%

B. 13.74%

C. 14.74%

D. None of the above

Calculate the realized compound yield (RCY) if the coupons can be reinvested at an average annual rate of 7%

A. 11.21%

B. 11.61%

C. 12.54%

D. 13.54%

E. None of the above

Suppose the investor expects to sell the bond 5 years from now for $900. What is the investor's holding period yield?

A. About 7%

B. About 10%

C. 14.3%

D. 15.02%

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