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Assume you purchase (at par) one 13-year bond with a 6.15 percent coupon and a $1,000 face value. Suppose you are only able to reinvest
Assume you purchase (at par) one 13-year bond with a 6.15 percent coupon and a $1,000 face value. Suppose you are only able to reinvest the coupons at a rate of 4.15 percent. If you sell the bond after 8 years when the yield to maturity is 7.15 percent, what is your realized yield?
4.31%
3.72%
5.66%
5.43%
6.98%
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