A 2-year maturity bond with face value of $1000 make annual coupon payments of $80 and is
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Question:
A 2-year maturity bond with face value of $1000 make annual coupon payments of
$80 and is currently selling at par. What will be the rate of return on the bond if its
yield to maturity at the end of the year is:
a. 6 percent
b. 8 percent
c. 10 percent?
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