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a federal government bond with a maturity of 16 years and an annual coupon rate of 10% (coupons are paid semi-annually) is currently traded on

a federal government bond with a maturity of 16 years and an annual coupon rate of 10% (coupons are paid semi-annually) is currently traded on the basis of a rate of return to maturity of 8%. you decide to buy this bond now. you intend to sell it in exactly 5 years and you believe it will then trade on realizing it on a maturity rate of return basis of 11%. what return (annual workforce) do you expect to achieve on this investment if you plan to reinvest the coupons cashed at the rate of 8% nominal capitalized semi-annually

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