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Three years ago, Joe bought a 5-year, 10% coupon paid semiannually bond for $1000. Currently, with interest rates having risen sharply, the bond is selling for $800 and you decide to sell it off. If you had re-invested the semi-annual coupons as you received them, what would your realized yield be over the 3-year holding period? Round to two decimal places.

A. 12%.

B. 6%.

C. 10%.

D. 3.63%.

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Financial Management, Finance

Category:- Financial Management
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