Fixed Income Q75
- Option : B
- Explanation : Annualized holding period return is the IRR of the investment: N = 3, PV = -1,025.78, PMT = 90, FV = $1,000, CPT I/Y. I/Y = 8%. The total portion of coupon payments and reinvestment return 90(1.08)² + 90(1.08) + 90 = $292.18.
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