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A 9-year, 5 percent coupon bond has a yield to maturity of 7.7 percent. A portfolio manager will buy this bond and will hold it
A 9-year, 5 percent coupon bond has a yield to maturity of 7.7 percent. A portfolio manager will buy this bond and will hold it for 7 years and sell after 7 years. In 7 years, the yield to maturity on this bond is expected to be 4.9 percent. Calculate the estimated annualized return based on these predictions
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