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10) Suppose that an investor with a ten-year investment horizon is considering purchasing a 15-year 8% coupon bond selling at par. The investor expects that

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10) Suppose that an investor with a ten-year investment horizon is considering purchasing a 15-year 8% coupon bond selling at par. The investor expects that he can reinvest the coupon paym 98% the remaining four years (eight periods). At the end of the investment horizon five- year bonds will be selling to offer a YTM of 12%. Assume semiannual interest compounding. What is the total return for this bond? ents at an annual interest rate of 9.2% for the first six years (twelve periods) and at

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