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Consider a 5-year bond, 4.5% annual coupon, YTM = 6%, par value = $1000, Calculate the bond price Calculate total principal and interest over 5
- Consider a 5-year bond, 4.5% annual coupon, YTM = 6%, par value = $1000,
- Calculate the bond price
- Calculate total principal and interest over 5 years.
- Calculate the reinvestment income
- Calculate realized annual return for this bond assuming all coupons are reinvested at YTM
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