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A 15% Sh 100,000 4-year bond was issued on 1st January 2020. The bond pay coupons quarterly. At the date of issue, market interest rate
A 15% Sh 100,000 4-year bond was issued on 1st January 2020. The bond pay coupons quarterly. At the date of issue, market interest rate was 17%. Compute the return of the bond (both absolute (and its breakdown) and in percentage) if the bond was held till maturity and coupons were invested at 10%.
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