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1 An investor is considering the purchase of a 20-year 7% coupon bond selling for S816 and a par value of $1,000. 'The yield to
1 An investor is considering the purchase of a 20-year 7% coupon bond selling for S816 and a par value of $1,000. 'The yield to maturity for this bond is 9%. (a) What would be the total future dollars if this investor invested $816 for 20 years earning 9% compounded semiannually? (b) Immediately after the purchase of the bond the yield changed to 8%, what will be the actual total return to the bondholder if she held this bond till maturity? What is EAR and BEY
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