Four years ago, Sandra Stills bought six-year, 5.5 percent coupon bonds issued by the Oriole Corp. for $944.99. If she sells these bonds at the current price of $892.26, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. Assume face value is $1,000. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.) Realised rate of return

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Four years ago, Sandra Stills bought six-year, 5.5 percent coupon bonds issued by the Oriole Corp. for $944.99. If she sells these bonds
at the current price of $892.26, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual
coupon payments. Assume face value is $1,000. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final
answer to 2 decimal places, e.g. 15.25%.)
Realised rate of return
%
Transcribed Image Text:Four years ago, Sandra Stills bought six-year, 5.5 percent coupon bonds issued by the Oriole Corp. for $944.99. If she sells these bonds at the current price of $892.26, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. Assume face value is $1,000. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.) Realised rate of return %
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