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A 4-year government bond makes annual coupon payments of 4.0% and offers a yield of 2.0% annually compounded. Assume face value is $1,000. (Do not

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A 4-year government bond makes annual coupon payments of 4.0% and offers a yield of 2.0% annually compounded. Assume face value is $1,000. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) a. Suppose that one year later the bond still yields 2.0%. What return has the bondholder earned over the 12-month period? b. Now suppose that the bond yields 1.0% at the end of the year. What return did the bondholder earn in this case

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