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A. You purchased a new issue GE Corp bond. The bond has a face value of $100, coupon interest rate of 4%, and a maturity
A. You purchased a new issue GE Corp bond. The bond has a face value of $100, coupon interest rate of 4%, and a maturity of 10 years. Four (4) years later you sell the bond in the secondary market; however, market interest rates for bonds of equal risk and maturity are now 3.5%. Calculate the selling price of your bond (6 points) B. Calculate the Annualized Holding Period Return (HPR) on this investment (2 points)
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