Brown & Co. issued seven-year bonds two years ago that can be called aft er...
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Brown & Co. issued seven-year bonds two years ago that can be called aft er two years. Th e bonds make semiannual coupon payments at a coupon rate of 7.875 percent. Each bond has a market value of $1,053.40, and the call price is $1,078.75. If an investor pur-chased the bonds at par value when they were originally issued and the bonds are called by the firm today, what is the investors realized yield?
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