Rate of Return. A 2-year maturity bond with face value $1,000 makes annual coupon payments of $80

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Rate of Return. A 2-year maturity bond with face value $1,000 makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is

a. 6 percent

b. 8 percent

c. 10 percent

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