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You have purchased a bond with 12 year maturity, 6% coupon rate, $1000 face value, and semi-annual payments for $919.71. Two years later, when the
You have purchased a bond with 12 year maturity, 6% coupon rate, $1000 face value, and semi-annual payments for $919.71. Two years later, when the YTM=4.8%, you sell the bond. What was your average annual realized yield on the bond, if you were able to reinvest coupons at 5%? (Provide your answer in percent rounded to two decimals, omitting the % sign.]
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