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Question
Alex purchased a $1,000 par value bond one year ago at a price of $1,016. At the time of purchase, the bond had 12 years to maturity and a 5 percent, semiannual coupon. Today, the bond has a yield to maturity of 5.25 percent. What is his realized yield as of today?A. 0.43 percent
B. 0.86 percent
C. 1.19 percent
D. 1.32 percent
E. 2.60 percent
Answer
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