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27. What is the holding period yield for an investor who pays $1,250 for a three-year bond with a $1,000 face value and a 7%

27. What is the holding period yield for an investor who pays $1,250 for a three-year bond with a $1,000 face value and a 7% coupon and sells the bond two years later for $1,420?

a. 4.00% b. 15.26% c. 6.87% d. 12.01%

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