Calculate bond realized yield

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Suppose you purchased, a 25-year, 8.70 percent coupon(annual payments) bond at pr. You hold it for 9 years and sell it so that you can take a vacation to British Virgin Islands. At the time you sell the bond, 16-years bond with similar characteristics (e.g., default risk) sell at yields of 7.1 percent. Calculate bond's realized yield.

Reference no: EM133058470

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