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Realised Yield: Rachel McGovern Bought a 10-Year Bond for $921

Question 74

Multiple Choice

Realised yield: Rachel McGovern bought a 10-year bond for $921.77 seven years ago. The bond pays a coupon of 15 percent semiannually. Today, the bond is priced at $961.92. If she sold the bond today, what would be her realised yield? (Round to the nearest percent.)


A) 17%
B) 18%
C) 9%
D) 16%

Correct Answer:

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