What is the realized yield on your investment

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Reference no: EM131075729

Suppose you buy a 7.20 percent coupon bond today for $980.00. The bond has a face value of $1,000, has 16 years until maturity, and pays interest semi-annually. Three (3) years after purchasing the bond you decide to sell it. At that time the YTM on your bond has decreased by 100 basis points. What is the realized yield on your investment?

Reference no: EM131075729

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