Consider a 2-yr, $1000 Par, 20% coupon bond with annual coupon payments with a current market price of $900. Assume you bought the bond at $900 today and sold it one year later (before it matured) for its market price at the time of $1000. What is the realized yield of this bond?  

Answer rating: 100% (QA)

To calculate the realized yield of the bond we need to consider the purchase price the selling pri... View the full answer