Three years ago, you purchased a bond for $974.69. The bond had three years to maturity, a coupon rate of 8%, paid annually, and a face value of $1,000. Each year, you reinvest all coupon interest at the current reinvestment rate shown in the table below. Today is the bond's expiration date. What is your compound realized return on the bond?

Time	Current reinvestment rate
0 (purchase date)	6.0	%
1	7.2	%
2	9.4	%
3 (expiration date)	8.2	%

A) 6,43%
B) 7,96%
c) 8,23%
D) 8,97%
mi) 9,13%

Answer rating: 100% (QA)

To calculate the compound realized return on the bond you need to consider the reinvestment of coupo... View the full answer