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A bond has a coupon rate of 4.25% that is paid annually. The bond matures in 8 years. The current yield to maturity is 3.5%.
A bond has a coupon rate of 4.25% that is paid annually. The bond matures in 8 years. The current yield to maturity is 3.5%. In the 3rd year, the YTM increases to 4%.
Calculate the actual return for the bond if it is held to maturity.
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