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2. See the following and check the relevant PPT Examples if needed. Show your steps. A $1,000 par value bond with 12 years to maturity
2. See the following and check the relevant PPT Examples if needed. Show your steps. A $1,000 par value bond with 12 years to maturity pays a coupon rate of 6%, annually. The bond's yield to maturity is 6.7% per year. You expect the bond's yield to maturity in three years will be 5.9% per year and you can reinvest the bond's coupon payments over the next three years in shortterm securities that pay 4% per year. What is the expected annual return over the next three years
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