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