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Consider an 8.5% coupon bond selling for $973.40 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years
Consider an 8.5% coupon bond selling for $973.40 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years will be, with certainty, r1 = 8%, r2 = 10%, and r3 = 11%. Calculate the yield to maturity and realized compound yield of the bond. (Round your answers to 2 decimal places. Omit the "%" sign in your response.) |
Yield to maturity | % |
Realized compound yield | % |
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