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Autojor invests in bonds, hoping the price will increase over time. It purchased a bond 4 years ago. It was a $ 3 0 ,
Autojor invests in bonds, hoping the price will increase over time. It purchased a bond years ago. It was a $ year bond, paying interest semiannually, when the market rate of interest was Since then, the company's bond rating dropped, which caused the market rate to climb to This dropped the price of the bond. Not wanting to lose more money, Autojor decided to sell.
What is the realized yield Autojor earned from the bond? Assume the bond was sold right after an interest payment was paid.
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