Assume you purchase (at par) one 13-year bond with a 6.15 percent coupon and a $1,000 face value. Suppose you are only able to reinvest the coupons at a rate of 4.15 percent. If you sell the bond after 8 years when the yield to maturity is 7.15 percent, what is your realized yield? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Answer rating: 100% (QA)

solution Realized yield can be calculated as shown below st... View the full answer