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17. Suppose that today you buy a bond with a coupon rate of 10% (with annual coupon payments) for $1,150. The bond has 15 years
17. Suppose that today you buy a bond with a coupon rate of 10% (with annual coupon payments) for $1,150. The bond has 15 years to maturity. Assume a par, or face value of $1,000. One year from now, the YTM on your bond has declined by 1 percent, and you decide to sell it. What is the Holding Period Yield (HPY) on your investment?
- 6.91%
- 8.31%
- 15.92%
- 16.49%
- None of the above
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