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Last year Shane purchased a $1000 par value bond with a 6% annual coupon rate and a 15-year maturity. At the time of the
Last year Shane purchased a $1000 par value bond with a 6% annual coupon rate and a 15-year maturity. At the time of the purchase it had an expected YTM of 10%. If Shane sold the bond today (so 1-year later) for $725, what rate of return would have earned this past year? That is, what is his realized return?
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
