Question
You have purchased a bond with 6 year maturity, 6% coupon rate, $1000 face value, and semi-annual payments for $975.48. Two years later, when the
You have purchased a bond with 6 year maturity, 6% coupon rate, $1000 face value, and semi-annual payments for $975.48.
Two years later, when the YTM=7.2%, you sell the bond.
What was your average annual realized yield on the bond, if you were able to reinvest coupons at 6.5%? [Provide your answer in percent rounded to two decimals, omitting the % sign.]
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Derivatives And Internal Models
Authors: H. Deutsch
4th Edition
1349307661, 9781349307661
