What is her annualized realized yield

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Ann is considering the purchase of a $1,000 bond with coupon of 6% that pays interest semiannually and matures in 3 years. Ann believes she will be able to reinvest her funds at a 4% annual rate. If Ann buys this bond for $1,010, what is her annualized realized yield? A: 4.0% B: 4.6% C: 5.6% D: 5.8% E: 6.2%

Reference no: EM131497537

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