Mary bought a $10,000, 7.25% coupon bond at 95.The bond matures in 10 years and interest is

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Mary bought a $10,000, 7.25% coupon bond at 95.The bond matures in 10 years and interest is paid semi-annually.

a. What is the current yield of the bond?

b. What is the yield to maturity of the bond?

c. Three years later, the market rate has dropped and Mary can sell her bond for 101.What will her realized yield be if she decides to sell?

Related Book For answer-question

Mathematical Applications for the Management Life and Social Sciences

ISBN: 978-1305108042

11th edition

Authors: Ronald J. Harshbarger, James J. Reynolds

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Posted Date: May 12, 2024 10:23 AM

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Mary bought a $10,000, 7.25% coupon bond at 95.The bond matures in 10 years and interest is

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Mathematical Applications for the Management Life and Social Sciences

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