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7 . You bought a corporate bond four years ago which at the time of purchase had a 1 6 year maturity, a 1 2
You bought a corporate bond four years ago which at the time of purchase had a year maturity, a annual coupon and a promised yield to maturity. Immediately after purchase, all interest rates fell to and stayed there. You held the bond for years and then sold it for $ What was the actual compound annual rate of return on the bond to the nearest basis point To keep it simple assume a flat yield curve and ignore any liquidity premiums, use annual compounding
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