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Consider a 8% coupon rate bond maturing in 2 years has a yield to maturity of 10%. The investor will realize the yield to maturity
Consider a 8% coupon rate bond maturing in 2 years has a yield to maturity of 10%. The investor will realize the yield to maturity as annual returns only if the bond is:
Group of answer choices
A. held to maturity and coupons are reinvested at 10%.
B. coupons are reinvested at 10%, irrespective of when the bond is sold.
C. held to maturity and coupons are reinvested at 8%.
D. sold in a year and coupons are reinvested at 8%.
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