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1. Suppose you bought an 8% annual coupon bond one year ago for $1,040. Current yield to maturity of the bond is 9% p.a. The

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1. Suppose you bought an 8% annual coupon bond one year ago for $1,040. Current yield to maturity of the bond is 9% p.a. The bond has two years until maturity. Assuming a $1,000 face value, what is your rate of return on this investment if you hold the bond for one year and sell the bond at current yield right after the coupon payment? Show your answer in percentage with two decimals

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