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Help and explanation finding the annualized compound return over the investment horizon of 20 years. Suppose you buy a 25-year, 4% [annual payment] coupon bond

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Help and explanation finding the annualized compound return over the investment horizon of 20 years.

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Suppose you buy a 25-year, 4% [annual payment] coupon bond for $1000 lie. the bond is selling at par! and you plan to hold it for 16 years. You forecast that the bonds yield to maturity will he 3'96 when it is sold and that the reinyestment rate on the coupons will be 6%. What will be your annualized compound return over your investment horizon of 20 years? Round all your dollar amounts to the nearest $0.01. i.e.. 2 decimal places, and the interest rate to the nearest 0.01%. Enter your answer as a percentage. For example: if you nd YTM to be "12.34%". enter "12.34" as the

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