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Calculating the expected yield

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Reference no: EM133061094

Suppose you purchase a 15-year, 7.58 coupon (annual payments) bond at par ($1000) and you plan to sell it at the end of 5 years at the prevailing market price. When you purchase the bond, your investment advisor predicts that similar bonds with 10 years annuity will yield 9.3 percent at the end of 5 years. Calculate your expected yield.

Reference no: EM133061094

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