Question: 2 . 5 Assume that you purchase a 3 - year $ 1 , 0 0 0 par value bond, with a 1 5 %

2.5 Assume that you purchase a 3-year $1,000 par value bond, with a 15% coupon, and a yield of 11%. After you purchase the bond, spot one-year interest rates at the end of years 1,2, and 3 are 8%,10%, and 14%, respectively. Calculate the realized yield if you hold the bond to maturity. Interest is paid annually.
2.5 Assume that you purchase a 3-year $1,000 par value bond,

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