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You are a bond trader for PIMCO, an active bond fixed-income investment firm based in Newport Beach, California. You are considering an 8% coupon bond

You are a bond trader for PIMCO, an active bond fixed-income investment firm based in Newport Beach, California. You are considering an 8% coupon bond selling for $953.10 with three years until maturity making annual coupon payments. You have done your macroeconomic analysis and know that the interest rates in the next three years will be, with certainty, r1 = 8%, r2 = 10%, and r3 = 12%. Your boss wants you to calculate the bonds realized compound yield.

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