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You purchased a 5-year, 9% coupon bond that pays interest semi-annually. The price of this bond is $108.32. Assume the interest rate changes to 6%

You purchased a 5-year, 9% coupon bond that pays interest semi-annually. The price of this bond is $108.32. Assume the interest rate changes to 6% (BEY) immediately after your purchase and stays there indefinitely. You plan to hold the bond for 4 years. Assume a flat yield curve.

What is the realized yield (BEY) of your investment?

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