One Year Ago,you Purchased a $1,000 Face Value Bond at a Yield

question 64

Multiple Choice

One year ago,you purchased a $1,000 face value bond at a yield to maturity of 9.45 percent.The bond has a 9 percent coupon and pays interest semiannually.When you purchased the bond,it had 12 years left until maturity.You are selling the bond today when the yield to maturity is 8.20 percent.What is your realized yield on this bond?

• A) 14.54 percent
• B) 15.27 percent
• C) 16.35 percent
• D) 17.60 percent
• E) 18.11 percent

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Definitions:

Environments

Surroundings in which an organism lives, including all living and non-living elements that affect its life and development.

Breast Milk

The natural and nutritional form of milk produced by mothers to feed their infants, containing essential antibodies to protect against disease and promote growth.

Infant Formulas

Manufactured food designed to feed babies and provide dietary nutrients that infants would get from breastfeeding.

Medulla

An area of the brainstem that controls vital bodily functions such as heart rate, breathing, and blood pressure.