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An investor bought a bond at par and held it for one year. If the coupon rate is 5%, original maturity of the bond is
An investor bought a bond at par and held it for one year. If the coupon rate is 5%, original maturity of the bond is 8 years, and the yield to maturity of the bond when it was sold was 6%, what is the holding period return of the bond? Assume annual interest coupon payments.
a) -1.23%
b) -1.21%
c) 5%
d) 6%
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