Three years later the similar bond sells at ytm of 5 if you


1. A 10 year 8 % coupon (semiannual) bond sells for $1,100, what is the bond holder's YTM?

2. On the issue date, you bought a 10-year maturity, 7% semi-annual coupon bond. The bond then sold at YTM of 6%. Now, three years later, the similar bond sells at YTM of 5%. If you hold the bond now, what is your realized rate of return for the 3 year holding period?

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