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1. Suppose that an investor with a six-month investment horizon is considering purchasing a 20-year 6% coupon bond (face value=$1,000) selling at $864.36. The investor

1. Suppose that an investor with a six-month investment horizon is considering purchasing a 20-year 6% coupon bond (face value=$1,000) selling at $864.36. The investor expects that six months later the bond will be selling to offer a yield to maturity of 6.6%. What is the holding period return of this bond? Assume semiannual compounding.

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