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A government bond matures in 20 years, makes annual coupon payments of 6.0% and offers a yield of 3.7% annually compounded. Assume face value is
A government bond matures in 20 years, makes annual coupon payments of 6.0% and offers a yield of 3.7% annually compounded. Assume face value is $1,000. Suppose that five year later, the bond still yields 2.7%. What return has the bondholder earned over the five years?
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