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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 fouryear corporate bond with a fixed annual coupon rate and a par value of $ is rated AA Its modified duration is projected at at the end of the first year. Given the representative OneYear 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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