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Imagine buying a bond for $850 with a 6% nominal yield and a $1000 par value and then selling it 3 years later for $900.
Imagine buying a bond for $850 with a 6% nominal yield and a $1000 par value and then selling it 3 years later for $900. What was your realized yield? What was the current yield on the bond in the preceding problem at the time you bought it?
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