A security pays $195.00 in one year and $190.00 in two years. The yield on the...
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A security pays $195.00 in one year and $190.00 in two years. The yield on the security is 4.20% (implying a market price of $362.13). If the first payment is reinvested at a rate of 5.20%, what is the realized return on the security over the two-year period? A security pays $195.00 in one year and $190.00 in two years. The yield on the security is 4.20% (implying a market price of $362.13). If the first payment is reinvested at a rate of 5.20%, what is the realized return on the security over the two-year period?
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