Purchase semi-annual coupon rate

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Reference no: EM131861322

You purchase a semi-annual coupon rate under the following assumptions: coupon rate 7% maturity of bond: 28 years current YTM: 6.25% your intention is to hold the bond for 12 years, during which time you expect to receive a reinvestment rate on all coupon payments of 6.1%. Finally, at the time of sale you assume that the open market YTM will be 5.95%. based upon the above items, find the horizon yield for this bond position.

Reference no: EM131861322

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