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You buy a 1 0 - year bond that will mature for $ 1 , 0 0 0 and has a coupon rate of 1
You buy a year bond that will mature for $ and has a coupon rate of percent. paid semiannually $ every six months Also, the yieldtomaturity YTM on this bond is percent Your plan is to hold this bond until it matures. As it turns out, your reinvestment rate for the coupons was different than you expected, at a nominal rate of percent semiannual compounding for the years. Given this information, determine the realized compounded yield you earned over this year period.
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