Question: Answer First Question with information from question below Use the information in the previous question (i.e., question 7 answered below). Bernie thinks he can reinvest

Answer First Question with information from question below

Use the information in the previous question (i.e., question 7 answered below). Bernie thinks he can reinvest the coupon payments at an annual interest rate of 10.2%. Bernie is planning to sell the bond at the end of year 3 when the bond will be selling to yield 12%. What is the annualized yield?

	A.	27.69%
	B.	17.49%
	C.	6.21%
	D.	6.97%

Suppose that Bernie Sanders has an investment horizon of 3 years. He wants to buy a 7yr 9% coupon bond, semiannual pay, yielding 10% rate of return. Face value is 1000. What is the price of the bond now?

Answer is $950.51

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