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

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

the investment horizon is Question 2 1 pts Suppose you buy a

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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