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You purchase an ABC 10%, 30 Year bond with a $100 face value for sum 109.72 1) If you bought the bond today and sold
You purchase an ABC 10%, 30 Year bond with a $100 face value for sum 109.72
1) If you bought the bond today and sold it after 1 year at a ytm of 10% what is your cash flow yield ?
2) What is your realized compound yield if you held the bond for 11 years if the reinvestment rate (R) was 11%?
Please show DETAILED work, explanations for each step stating why you did what you did. Please do not answer unless you are willing to comply with the request. thanks.
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