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Now assume that you purchase a 5-year, $1,000 face bond with a 3.5% coupon, paid annually,...

Now assume that you purchase a 5-year, $1,000 face bond with a 3.5% coupon, paid annually, currently selling with a 4% YTM (yield to maturity).  Immediately after you purchase the bond, the reinvestment rate in the market drops to 3%.  What is your realized yield on your bond investment?

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