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Face Value Selling price $ 959.16 X XX $1,020.66

Face Value Selling price $ 959.16 X XX $1,020.66

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume you purchase (at par) one 13-year bond with a 6.15 percent coupon and a $1,000 face value. Suppose you are only able to reinvest the coupons at a rate of 4.15 percent. If you sell the bond after 8 years when the yield to maturity is 7.15 percent, what is your realized yield? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. $ 959.16 $ 1,020.66 5.45 Face Value Selling price Realized yield %
Transcribed Image Text:Assume you purchase (at par) one 13-year bond with a 6.15 percent coupon and a $1,000 face value. Suppose you are only able to reinvest the coupons at a rate of 4.15 percent. If you sell the bond after 8 years when the yield to maturity is 7.15 percent, what is your realized yield? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. $ 959.16 $ 1,020.66 5.45 Face Value Selling price Realized yield %
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