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An 8-year, 6 percent coupon bond has a yield to maturity of 8.5 percent. A portfolio manager will buy this bond and will hold it
An 8-year, 6 percent coupon bond has a yield to maturity of 8.5 percent. A portfolio manager will buy this bond and will hold it for 3 years and sell after 3 years. In 3 years, the yield to maturity on this bond is expected to be 5.5 percent. Calculate the estimated annualized return based on these predictions. Enter your answer as number.
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