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A. What is the holding period return on a bond with a par value of $1000 and a coupon rate of 6% if its price

A. What is the holding period return on a bond with a par value of $1000 and a coupon rate of 6% if its price at the beginning of the year was $1050 and its price at the end was $940? Assume interest is paid annually.

B. Can you give two reasons the price of the bond might have fallen over the year.

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