Assume you purchase (at par) one 12-year bond with a 6.10 percent coupon and a $1,000 face value. Suppose you are only able to reinvest the coupons at a rate of 4.10 percent. If you sell the bond after 7 years when the yield to maturity is 7.10 percent, what is your realized yield? (Do not round intermediate calculations. Round your answers to 2 decimal places.) FV Answer is complete but not entirely correct. 483.26
Assume you purchase (at par) one 12-year bond with a 6.10 percent coupon and a $1,000 face value. Suppose you are only able to reinvest the coupons at a rate of 4.10 percent. If you sell the bond after 7 years when the yield to maturity is 7.10 percent, what is your realized yield? (Do not round intermediate calculations. Round your answers to 2 decimal places.) FV Answer is complete but not entirely correct. 483.26
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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please help with the FV value that i got wrong
![Assume you purchase (at par) one 12-year bond with a 6.10 percent coupon and a $1,000 face value. Suppose you are only able to
reinvest the coupons at a rate of 4.10 percent. If you sell the bond after 7 years when the yield to maturity is 7.10 percent, what is your
realized yield? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Answer is complete but not entirely correct.
FV
Selling price
Realized yield
$ 483.26 X
$
959.11
5.37 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F326f79ae-601f-4930-b4cc-3c8ba9883b6f%2F9ebef35a-8b95-4851-bfdd-1a1cb978a239%2F0g9iz9p_processed.png&w=3840&q=75)
Transcribed Image Text:Assume you purchase (at par) one 12-year bond with a 6.10 percent coupon and a $1,000 face value. Suppose you are only able to
reinvest the coupons at a rate of 4.10 percent. If you sell the bond after 7 years when the yield to maturity is 7.10 percent, what is your
realized yield? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Answer is complete but not entirely correct.
FV
Selling price
Realized yield
$ 483.26 X
$
959.11
5.37 %
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