问题
单项选择题
An investor buys a 15-year, 10 percent annual pay coupon bond for $1000. He plans to hold the bond for 5 years while reinvesting the coupons at 12 percent. At the end of the 5-year period he feels he can sell the bond to yield 9 percent. What is the expected realized (horizon) yield()
A. 10.0%.
B. 11.8%.
C. 11.2%.
答案
参考答案：C
解析：
Value of coupons: N=5, I/Y=12, PMT=100, PV=0, CPT FV=635.28.
Value of the bond at the end of fifth year: N=10, I/Y=9, PMT=100, FV=1000, CPT PV=1064.18.
Realized Return =[(Total future value/Present Value)1/(n×m)-1]×m=[($1699.46/$1000)1/(n×m]×1=11.2%.