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Business, 10.09.2019 02:30 deannajd03

You buy a ten-year bond with an 8% coupon rate at a yield-to-maturity of 6%. (both rates follow the bey convention.) you hold the bond for two years, reinvesting coupons in a money market account earning an apr of 4%, compounded monthly. on the day you receive the fourth coupon, you sell the bond. since market interest rates have increased, you sell it at a yield-to-maturity of 8%. what is your realized compound yield? report the realized compound yield as an apr with semi-annual compounding.

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