Bond a has a coupon rate of 653 pays coupon annually and, Ask an Expert

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Bond A has a coupon rate of 6.53%, pays coupon annually and had 15 years to maturity at issue. You purchased the bond when it was first issued, the YTM immediately changed to 8% and it remained at this level indefinitely. At issue, the bond’s duration was equal to that of Bond B, which had 10 years to maturity and a coupon rate equal to 0%. What is the realized return of Bond A as of the end of year 10?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92309855

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