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Fill in the blanks: Paco buys a bond and anticipates he will earn an 8 . 0 % yield to maturity. He plans on reinvesting
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Paco buys a bond and anticipates he will earn an yield to maturity.
He plans on reinvesting all the coupon payments. If interest rates rise to right after Paco purchases the bond and stay there for the life of the bond, the realized return on Paco's investment if he holds the bond until it matures will be the yield to maturity of the bond when he purchased it
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