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Calculate the price of a 3 year 5% annual bond using the spot curve below (par value is $1000): Spot Curve 7% 6% 5% 4
Calculate the price of a 3 year 5% annual bond using the spot curve below (par value is $1000): Spot Curve 7% 6% 5% 4 Year, 6% 4% 3 Year, 5% 3% 2 Year, 3% 2% 1 Year, 2% 1% 0% 1 Year 2 Year 3 Year 4 Year 997.48 1001.22 1003.18 1005.64 An investor purchases a 5-year, 8% annual coupon bond at 92.418 per 100 par and sells it in two years. The bond's yield-to-maturity goes down from 10% to 9% straight after the purchase. What is the realized rate of return? 9.24% O 11.16% O 13.82% O 14.11%
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