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Assume you purchase (at par) a 10-year bond with a 6 percent coupon and a $1,000 face value. Suppose you are only able to reinvest

Assume you purchase (at par) a 10-year bond with a 6 percent coupon and a $1,000 face value. Suppose you are only able to reinvest the coupons at a rate of 4 percent. If you sell the bond after five years when the yield to maturity is 7 percent, what is your realized yield? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

FV=

Selling Price =

Realized Yield = %

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