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A bond with annual coupon rate of 8.10% and price of $780 just yesterday paid a coupon. A total of 16 coupons remain to be
A bond with annual coupon rate of 8.10% and price of $780 just yesterday paid a coupon. A total of 16 coupons remain to be paid. Suppose you buy the bond at todays price, hold it and receive 7 coupons, and then sell the bond. If at the time you sell the bond its yield-to-maturity has increased a total of 90 basis points find the bond selling price and annual rate of return throughout the investment horizon.
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