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Bonds of Zelle Corporation with a par value of $1,000 sell for $980, mature in four years, and have a 6% annual coupon rate paid

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Bonds of Zelle Corporation with a par value of $1,000 sell for $980, mature in four years, and have a 6% annual coupon rate paid semiannually. Calculate the ealized compound yield (based on forecasts) for an investor with a 3-year holding period and a reinvestment rate of 7% over the period. At the end of three he 6% coupon bonds with one year remaining will sell to yield 6% Multiple Choice 6.77% 8.33% 3.78% 7.90% 6.77% 8.33% 3.78% 7.90% 6.00% None of the options are correct

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