Question: Your client bought a $1000 face-value bond with 20-years remaining to maturity for $981. The bond pays a semi-annual coupon at 9% APR compounded semi-annually.

Your client bought a $1000 face-value bond with 20-years remaining to maturity for $981. The bond pays a semi-annual coupon at 9% APR compounded semi-annually. However, 3 years later (just after receiving his 6th semi-annual coupon payment), he sold the bond for $854. What was his realized yield (or realized return) stated as an APR with semi-annual compounding?

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