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Realized Yield: Jorge Cabrera Paid $980 for a 15-Year Bond

Question 17

Multiple Choice

Realized yield: 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 sold the bond today, what would be his realized yield? (Round to the nearest percent.)


A) 12%
B) 8%
C) 11%
D) 9%

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