Question: Help and explanation figuring out what the annualized compound return over the investment horizon is Question 2 1 pts Suppose you buy a 25-year, 5%

Help and explanation figuring out what the annualized compound return over the investment horizon is

Question 2 1 pts Suppose you buy a 25-year, 5% (annual payment) coupon bond for $1000 (i.e., the bond is selling at par) and you plan to hold it for 20 years. You forecast that the bond's yield to maturity will be 7% when it is sold and that the reinvestment rate on the coupons will be 5%. What will be your annualized compound return over your investment horizon? Round all your dollar amounts to the nearest $0.01, i.e., 2 decimal places, and the interest rate to the nearest 0.01%. Enter your answer as a percentage. For example: if you find YTM to be "12.34%", enter "12.34" as the
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