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A four - year corporate bond with a fixed 6 % annual coupon rate and a par value of $ 1 , 0 0 0

A four-year corporate bond with a fixed 6% annual coupon rate and a par value of $1,000 is rated AA. Its modified duration is projected at 2.75 at the end of the first year. Given the representative One-Year Corporate Transition Matrix (entries are in %) and assuming no default, whats the expected return on the bond over the next year solely attributable to possible credit rating changes?
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