What is the realized yield on investment


Question: Suppose you buy a 7% coupon bond today for $960. The bond has a face value of $1,000, and has 18 years until maturity, and pays interest semi-annually. You hold the bond for five (5) years and then you decide to sell it. When you sell the bond the YTM has increased by 100 basis points (1%).

What is the realized yield on your investment?

Please also show:

PMT =
PV =
FV =
n =
i =

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Finance Basics: What is the realized yield on investment
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