ksanquist9929 ksanquist9929
  • 26-01-2024
  • Business
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Suppose you buy a 2 year bond with a coupon rate of 10% (annual payments) and yield to maturity of 12%. The par value is $1000. You hold the bond until maturity. Suppose the coupon is invested at 8%. Compute the realized compound rate of return.

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