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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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