savvy sammy just sold a 9.5% coupon bond with 8 years remaining maturity for $1,080. He purchased
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Question:
savvy sammy just sold a 9.5% coupon bond with 8 years remaining maturity for $1,080. He purchased the bond two years ago, which is when the bond was first issued to the public as a new issue par bond.
1A) What is the YTM for this bond today?
- 9.50%
-5.23%
- 8.89%
- 8.12%
-13.13%
1B) What is the YTM for the bond when it was first issued?
- 9.50%
-5.23%
- 13.13%
- 8.89%
- 8.12%
1C) What is sammy's realized holding period yield (HPY) on his investment?
- 8.12%
- 9.50%
- 13.13%
- 5.23%
- 8.89%
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