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A bond is issued with a coupon rate of 10% (paid out annually), a maturity of 17 years and a yield to maturity of 2%.
A bond is issued with a coupon rate of 10% (paid out annually), a maturity of 17 years and a yield to maturity of 2%. If you decide to purchase the bond today for $2,143.35 and hold it for 1 years, what is your overall rate of return on the bond if the yield to maturity at the end of the holding period is 0% ? 17.74%23.61%25.97%19.51%21.46%
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