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A 9.3% annual coupon bond with a 10-year maturity and a $1,000 par value has a yield to maturity of 8%. Assuming that the yield
A 9.3% annual coupon bond with a 10-year maturity and a $1,000 par value has a yield to maturity of 8%. Assuming that the yield curve is flat and doesnt shift, the holding period return you would achieve from buying the bond, holding it for one year and selling it is:
A.
More than 8%, since the bond is selling at a premium.
B.
9.3%
C.
None
D.
8.0%
E.
Less than 8%, since the bond is selling at a discount.
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