Suppose you buy a 78 percent coupon bond today for 1080 the


Suppose you buy a 7.8 percent coupon bond today for $1,080. The bond has 5 years to maturity. 

What rate of return do you expect to earn on your investment? 

Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell. What price will your bond sell for?

What is the annual realized yield on your investment?

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Financial Management: Suppose you buy a 78 percent coupon bond today for 1080 the
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