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Assume Emma bought a bond with a 10 -year maturity at ( $ 640 ). Coupons are paid semiannually. At the end of the 10
Assume Emma bought a bond with a 10 -year maturity at \\( \\$ 640 \\). Coupons are paid semiannually. At the end of the 10 years, her realized compound yield (RCY) on this investment on a bond equivalent basis is conditional on her ending wealth under the following scenarios. (1) If she has a total ending wealth of \\( \\$ 1,100 \\), her RCY is \2.74. (2) If she has a total ending wealth of \\( \\$ 1,248 \\), her RCY is \3.40. (3) If she has a total ending wealth of \\( \\$ 1,418 \\), her RCY is \4.06. Which of the above is/are true? Only (2) is true. Only (1) is true. Both (1) and (2) are true. Both (2) and (3) are true. None is true
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