a. The 7.6%, twenty-year bond yields 5.6%. If this yield to maturity remains unchanged, what will be
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Question:
a. The 7.6%, twenty-year bond yields 5.6%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face value of $1,000.
b. What is the total return to an investor who held the bond over this year?
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