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Consider an 7.5% coupon bond selling for $966.10 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years
Consider an 7.5% coupon bond selling for $966.10 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years will be, with certainty, r1 = 7%, r2 = 8%, and r3 = 10%. Calculate the yield to maturity and realized compound yield of the bond. |
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