Compute the realized compound yield

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Reference no: EM131074618

We buy a 15 year 10% bond at the time that market rates are7%. We do not know that we shall sell it before its maturity. When we purchase it rates rise to 12% and stay there till we sell it. We sell the bond six years later when market rates are 5%. Compute the realized compound yield that we made per year during the time that we owned it.

Reference no: EM131074618

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