Question: hi i need help with A- D. please provide steps. thanks 2. Suppose you purchase a ten-year bond with 6% semiannual coupons. You hold the
hi i need help with A- D. please provide steps. thanks
2. Suppose you purchase a ten-year bond with 6% semiannual coupons. You hold the bond for four years and sell it immediately after receiving the eighth coupon. If the bond's yield to maturity was 5.00% when you purchased and 3% when you sold the bond, assume that the reinvestment rate is 5%. a. What is the price when you buy the bond? b. What is the price when you sold the bond? c. What is the total % return this investment? d. Is this total % return higher or lower than YTM? Explain your findings
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