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Three years ago, you purchased a bond for $950 and today is the bond's maturity date. The bond had 3 years to maturity, a coupon
Three years ago, you purchased a bond for $950 and today is the bond's maturity date. The bond had 3 years to maturity, a coupon rate of 10%, paid annually, and a face value of $1,000. Each year you reinvested all coupons at the prevailing market rates shown in the table below. What is your realized compound yield on the bond?
Time Rate 0 (issue) 12.1% 1 13.2% 2 16.4% 3 (maturity) 11.2%
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