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3. David Hoffman purchases a $1,000 20-year bond with an 8% coupon (annual payments). Yields on comparable bonds are 10%. Bob expects that two years

3. David Hoffman purchases a $1,000 20-year bond with an 8% coupon (annual payments). Yields on comparable bonds are 10%. Bob expects that two years from now, yields on comparable bonds will have declined to 9%. Find his expected yield, assuming the bond is sold in two years. (1 point)

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