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Help with my Finance practice!!! Karen just bought a 10-year, 5% coupon bond with $1,000 par for $825. If she sells this bond four years

Help with my Finance practice!!! image text in transcribed
Karen just bought a 10-year, 5% coupon bond with $1,000 par for $825. If she sells this bond four years later for $950, what is her realized yield in year 4 (with semi-annual interests)? Realized Yieid is the return earned on a bond given the cast flows actualy received by the investor It represents the interest rate at which the present value of actual cash flows generated by the irvestrient equals the bond's price Time 0 sup(C) ar Value (F) Coupon Rate C=CouponPayment=mCouponRateParValue m C Par Value n P8 PBB=C[i1(1+i)n1]+(1+i)0F] semi annual rate -The Realized Yield is quoted as an annual percentage rate (APR) - Recall APR = periodic rate(i) m - So, Realized Yleld = periodic rate (i) m

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