You buy a 10-year bond with a 605 coupon when yields are 6, Ask an Expert

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You buy a 10-year bond with a 6.05% coupon when yields are 6%. You hold the bond for 3 years and sell it when yields are 6.25%. Your reinvestment rates are 5.75% over the first year and 6.26% over the second year. The bond was purchased at par value of $1000 and pays coupons annually.

A) what is the holding period return?

B) what is the realized coupon yield?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92848801

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