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You own the following positions. Using the information provided: (for Zero Coupon Bonds m = 1, Coupon Bonds m = 2) Issuer Maturity Coupon Price

You own the following positions. Using the information provided: (for Zero Coupon Bonds m = 1, Coupon Bonds m = 2)

Issuer

Maturity

Coupon

Price (% Par)

US Treasury Bond

2028

0%

75.75

XYZ Bond

2028

5.00%

JKL Corp

2028

7.50%

89.1

If you bought the JKL bond today and sold it 3 years from today, when the YTM on 3yr. US Treasury = 3.0%, the YTM on a 5 yr US Treasury = 4.0% and the YTM on an 8 yr. US Treasury = 5.0%; the risk premium for JKL is 3.0% when you sell the bond; what is the realized return on your investment in JKL?

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