Question: a. Using the facts given in problem 11, what would be the anticipated realized yield if the forecast is that the bond can be sold

a. Using the facts given in problem 11, what would be the anticipated realized yield if the forecast is that the bond can be sold in three years for $1,280? Use Formula 12–4 on page 322. Continue to assume the bond has a 14 percent rate ($140) and a current price of $1,160.
b. Now break down the anticipated realized yield between current yield and capital appreciation.

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