A bond is selling at 100% of its par value right now. It has 8% annual coupon

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A bond is selling at 100% of its par value right now. It has 8% annual coupon rate. You bought this bond ten years ago at 95% of its par value.

If you sold this bond today, what is your realized yield?

You must round up answer to 2 decimals, and write your answer without the percentage sign. (For example, if your answer is 5.80%, you must write 5.80)

Related Book For answer-question

Financial Accounting

ISBN: 9781260006452

17th Edition

Authors: Jan Williams, Susan Haka

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Posted Date: Mar 15, 2023 01:00 AM

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A bond is selling at 100% of its par value right now. It has 8% annual coupon

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Expert Answer:

Since the bond is currently selling at 100 of its par value it means the market interest rate equals ... View the full answer

Financial Accounting

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