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An 20 year government bond makes annual coupon payments of 3% and offers a yield of 11% annually compounded. Suppose that one year later the

An 20 year government bond makes annual coupon payments of 3% and offers a yield of 11% annually compounded. Suppose that one year later the bond yields 11%, what returns has the bond holder earned over the 12-month period?

A. 11.0%

B. 6.7%

C. 13.6%

D. -7.7%

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