A security pays $80.00 in one year and $85.00 in two years. The yield on the...

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A security pays $80.00 in one year and $85.00 in two years. The yield on the security is 7.38% (implying a market price of $148.22). If interest rates fall to 6.38%, what is the realized return over the 1.5 year period? A security pays $80.00 in one year and $85.00 in two years. The yield on the security is 7.38% (implying a market price of $148.22). If interest rates fall to 6.38%, what is the realized return over the 1.5 year period?

Answer rating: 100% (QA)

The realized return on the security over the 15 year period can be calculated us... View the full answer