You purchase an ABC 10%, 30 Year bond with a $100 face value for sum 109.72...

You purchase an ABC 10%, 30 Year bond with a $100 face value for sum 109.72

1) If you bought the bond today and sold it after 1 year at a ytm of 10% what is your cash flow yield ?

2) What is your realized compound yield if you held the bond for 11 years if the reinvestment rate (R) was 11%?

Please show DETAILED work, explanations for each step stating why you did what you did. Please do not answer unless you are willing to comply with the request. thanks.

Expert Solution

ekkarill92 answered 2 years ago

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You purchase an ABC 10%, 30 Year bond with a $100 face value for sum 109.72...

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