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Posted on Sep 04, 2024

7 . You purchase a $ 1 0 0 0 par bond with an 1 1 % coupon and a term of 8 years, and

7 .

You purchase a $

1000

par bond with an

11 %

coupon and a term of

8

years, and you reinvest all of the interest payments semiannually. If interest rates drop to

9 %

after you purchase the bond, what is the

return on your investment in the bond?

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