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Suppose you buy a 5 0 - year, 5 . 5 % coupon bond when its YTM is 6 . 6 7 % and you

Suppose you buy a 50-year, 5.5% coupon bond when its YTM is 6.67% and you plan to hold it for 15 years. You forecast that the YTM will be 7.5% when it is sold and the reinvestment rate on coupon payment will be 3.2%. What is your realized return over 10 years of investment? Assume that bond pays semi-annual coupon payment
How much do you pay for the bond?
How much can you sell you bond after 15 years at the YTM of 7.5%?
What is the total value of your coupon payments at the end of 15 years with reinvestment rate of 3.2%?
What is your realized return over 15-year period?

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