What is the approximate realized yield


Problem:

Suppose you have a bond that pays a 6% coupon, matures in 15 years and has a current price of $850. If you expect to sell it in 5 years at $950, what is your approximate realized yield?

(For simplicity, assume an annual convention, and a $1,000 par value bond)

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Finance Basics: What is the approximate realized yield
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