Question: Question 4 ( 1 point ) Suppose you purchased, a 2 6 - year, 8 . 3 9 percent coupon ( annual payments ) bond

Question 4(1 point)
Suppose you purchased, a 26-year, 8.39 percent coupon (annual payments) bond at par. You hold it for 4 years and sell it so that you can take a vacation to Virgin Islands. At the time you sell the bond, 22-year bonds with similar characteristics (e.g., default risk) sell at yields of 7.8 percent. Calculate bond's realized yield.

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