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A government bond matures in 9 years, makes annual coupon payments of 5.2% and offers a yield of 4.1% annually compounded. Suppose that the bond
A government bond matures in 9 years, makes annual coupon payments of 5.2% and offers a yield of 4.1% annually compounded. Suppose that the bond yields 3.1% at the end of the year. What return did the bondholder earn?
Question 8 options:
| 6.05% |
| 10.85% |
| 12.33% |
| 3.10% |
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