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A 8-year government bond makes annual coupon payments of 4.7% and offers a yield of 2.7% annually compounded. Assume the face value is $1,000. Note:

A 8-year government bond makes annual coupon payments of 4.7% and offers a yield of 2.7% annually compounded. Assume the face value is $1,000. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Suppose that one year later the bond still yields 2.7%. What return has the bondholder earned over the 12-month period? Now suppose that the bond yields 1.7% at the end of the year. What return did the bondholder earn in this case

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