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10. Consider a 10-year coupon bond with 10% annual coupons. The current YTM is 7%. Suppose you buy the bond today and hold the bond
10. Consider a 10-year coupon bond with 10% annual coupons. The current YTM is 7%. Suppose you buy the bond today and hold the bond till maturity. What is the rate of retum from this investment if the YTM increases from 7% to 9% after three years? A 7% B. 9% DUAL >9% Between 7% and 9% 11. Consider a 10-year coupon bond with 10% annual coupons. The current YTM is 7%. Suppose you buy the bond today and sell it in three years right after receiving the third coupon. What is the rate of return from this investment if the YTM increases from 7% to 9% after three years? A 7% B. 9% C. 9% E. Between 7% and 9%
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