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4 points Todw, you purchase a 25 year, 3% coupon bond with semi-annwal payments. The bond is rated AA, and you note that AAA bonds

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4 points Todw, you purchase a 25 year, 3% coupon bond with semi-annwal payments. The bond is rated AA, and you note that AAA bonds are selling at a credit spread of 125 basis points above Treasuries. Comparable Treasury securities have a yield-to-maturity of 2.7%. 5 dx years from now, immediately after receiving the 12 th semi-annual coupon payment, you sell the bond. At the time you see the bend, it is stlil AAA and credit spreads have remained constant. However, at that time, comparable Treasuries have a yieid-tomaturity of 3.2. What is the holding period return? 0.0150.01450.02900801

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