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Calculate bond realized yield

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Reference no: EM133057465

Suppose you purchased, a 27-year, 6.22 percent coupon (annual payments) bond at par. You hold it for 5 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 8.12 percent. Calculate bond's realized yield.

Reference no: EM133057465

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