Jorge Cabrera paid $980 for a 15-year bond 10 years ago. The bond pays a coupon of 10 percent semiannually. Today, the bond is priced at $1,054.36. If he sells the bond today, what will be his realized yield? (Round to the nearest percent.)

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The realized yield is the annual rate of return an investor earns on a bond if they buy it at one price and sell it at another price. The formula for realized yield is:Realized yield = (Selling price - Purchase price + Coupon payments) / Purchase price * (360 / Days held)In this case, Jorge paid $980 for the bond 10 years ago, and the bond is priced at $1,054.36 today. The bond pays a coupon of 10 percent semiannually, so Jorge has received $98 in coupon payments over the past 10 years.Realized yield = ($1,054.36 - $980 + $98) / $980 * (360 / 3,650)= 11.01%Therefore, Jorge's realized yield is 11%.

Jorge Cabrera Paid $980 for a 15-Year Bond 10 Years