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Sharon Rock bought a semi - annual coupon bond today for 9 8 . The bond has a coupon rate of 4 percent, and ten
Sharon Rock bought a semiannual coupon
bond today for The bond has a coupon rate
of percent, and ten years to maturity. Sharon
expects to sell the bond in five years, when the
yields are expected to be percent. She also
expects to be able to reinvest the coupons from
this bond at percent per year.
What is Sharons expected horizon yield on her
bond investment?
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