Intro

A year ago, you bought a bond with a coupon rate of $5\mathrm{.}4\%,$ just after it paid its semiannual coupon. The bond had $17$ years to maturity, a face value of $$1,000$ and a yield to maturity of $3\mathrm{.}2\%.$

Part $1$

Attempt $\frac{1}{10}$ for $10$ pts$.$

Shortly after buying the bond, yields changed to $4\mathrm{.}5\%.$ You reinvested the first coupon at the new market interest rate. What is youcrealized yield if you sell the bond now, one year after buying it$?$