You purchased a bond with a 7 percent yield to maturity. One year later, interest rates fall to 6 percent. If you hold the bond to maturity, your realized yield will be:
A) less than 6 percent.
B) 6 percent.
C) between 6 and 7 percent.
D) 7 percent.
E) greater than 7 percent.
Correct Answer:
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