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1. You purchase a 20-year, $1,000 bond with a coupon rate of 6 percent paid annually with a margin requirement of 40 percent. a. What
1. You purchase a 20-year, $1,000 bond with a coupon rate of 6 percent paid annually with a margin requirement of 40 percent. a. What would be your rate of return if the interest rates decreased, immediately after purchase, to 4 percent? b. What would be your rate of return if the interest rates increased, immediately after purchase, to 8 percent?
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