*Need to use the following information for #10-11. I Broke it up so itll be easier to read.

10) Consider a bond with a market price of $1049.73, a face value of $1,000, maturity of 3 years and a coupon rate of 12%. The YTM on this bond is 10%.

What is the major reinvestment rate assumption that we make with respect to this YTM?

a. All cash inflows will be reinvested at 12%

b. All cash inflows will be reinvested at 10%

c. All cash inflows will be reinvested at 14%

d. All cash inflows will be reinvested at 0%

e. All cash inflows will be reinvested at 5%

11) What is the realized return on this investment if all cash flows are reinvested at 5% per year for the next three years?

a. 10%

b. 12%

c. 5%

d. 9.5%

e. 9%