We buy a 25 year 10 bond yielding 9 we sell it after 5


Question: We buy a 25 year, 10% bond yielding 9%. We sell it after 5 years when market rates are 12%. What is the realized compound yield during the 5 years, if YTM decreases, as soon as we buy it, and it remains at 8% for the 5 year duration. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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Finance Basics: We buy a 25 year 10 bond yielding 9 we sell it after 5
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