A bond with semi-annual coupons and par value of 1000 pays


A bond with semi-annual coupons and par value of $1000 pays 5% coupons. You bought the bond for $857.64 and sold it 18 months later for $904.06. The future value of your coupons with a reinvestment rate of 4% is $76.51. What is your realized annual yield on the bond?

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Financial Management: A bond with semi-annual coupons and par value of 1000 pays
Reference No:- TGS02243932

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