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A bond with three years to maturity has a face value of $1000 and a coupon rate of 3%. It is initially bought at a

A bond with three years to maturity has a face value of $1000 and a coupon rate of 3%. It is initially bought at a yield to maturity of 7% then sold after one year when market yields have fallen to 3%. What is the rate of return for the first year?

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