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You purchase a 3-year coupon bond at the par value today. The information of this coupon bond is shown below: annual coupon rate: 10% face
You purchase a 3-year coupon bond at the par value today. The information of this coupon bond is shown below: annual coupon rate: 10% face value: $1,000 What is the YTM of this bond today? Suppose the annual reinvestment rate is 8% for the next two years. What is the realized compound yield if you sell this bond at the end of year 2? O a. O b. 10%; 10% 10%; 10.75% O c. 10.75%; 10.75% O d. 8%; 9%
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