单选题 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、

A. 10.0%.
B、

B. 11.8%.
C、

C. 11.2%.

【正确答案】 C

【答案解析】
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%.