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Realized yield Bonds of Francesca Corporation with a par value of $1,000 sell for $960, mature in five years, and have a 7 percent coupon
Realized yield
Bonds of Francesca Corporation with a par value of $1,000 sell for $960, mature in five years, and have a 7 percent coupon rate paid semiannually.
a. Calculate realized yield for an investor with a three-year holding period and a reinvestment rate of 6 percent over the period. At the end of three years, the bond will sell to yield 8 percent.
The answer is 7.82% i just need to show my work on how i got the answer
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