Question: You are a bond trader for Renaissance Technologies, an active bond fixed-income hedge fund based in New York. You are considering an 8% coupon bond

You are a bond trader for Renaissance Technologies, an active bond fixed-income hedge fund based in New York. You are considering an 8% coupon bond selling for $953.10 with three years until maturity making annual coupon payments. You have done your macroeconomic analysis and know that the interest rates in the next three years will be, with certainty, r₁ = 7%, r₂ = 10%, and r₃ = 13%. Your boss wants you to calculate the bonds realized compound yield

Group of answer choices

9.65%

9.99%

10.25%

10.04%

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