Exactly 26 years ago you purchased a newly-issued 30-year bond, annual 6.0% coupon, par $1000, when market rates were 5.0%.Exactly 10 years ago, rates suddenly increased to 11.0%.Today, the central bank announced a rate change, which has caused rates to dramatically decrease to 3%, so you sell.

What is your realized yield over your holding period of the bond?

There are 4 steps. Enter your answers for each below:

1. What is the price at purchase?:

2. What is the price when you sold the bond?:

3. Total accumulated value when you sold the bond (including the sale of the bond) is:

4. Realized annual rate of return is: