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Business, 15.04.2020 19:21 tashaylinm02

Assume that you purchase a 3-year $1,000 par value bond, with a 8% coupon, and a yield of 10%. After you purchase the bond, one- year interest rates are as follow, year 1 = 10%, year 2 = 8%, year 3 = 6% (these are the reinvestment rates). Calculate the realized horizon yield if you hold the bond to maturity. Interest is paid annually.

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Assume that you purchase a 3-year $1,000 par value bond, with a 8% coupon, and a yield of 10%. After...
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