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A semi-annual bond is selling for $110 and has 9 years to maturity. The coupon is 8.00%. This bond can be called in 3 years
A semi-annual bond is selling for $110 and has 9 years to maturity. The coupon is 8.00%. This bond can be called in 3 years at $105 Question8 1 pts What is the difference between the yield-to-maturity (YTM) and the realized compound yield (RCY)? O The YTM considers only coupon payments, whereas, the RCY includes all the bond's cash flows. O The RCY is the actual return, whereas, the YTM is the expected return at the beginning of the investment. O They are actually the same concept. The YTM is the actual return, whereas, the RCY is the expected return at the beginning of the investment
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