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An investor buys a $1,000 par value, 10.0% coupon bond with 9 years until maturity for The investor holds the bond for 3 years and
An investor buys a $1,000 par value, 10.0% coupon bond with 9 years until maturity for The investor holds the bond for 3 years and sells the bond when market rates are 3.5%. What was the investor's holding period return? Round your percentage to one decimal place (e.g. 9.4\%) A Question 4 (4 points) Which of the following statements are false? 1. Low coupon bonds generally have more interest rate risk than high coupon bonds. 2. When interest rates decrease the coupon rate on a bond does not change. 3. High coupon bonds generally have more interest rate risk than low coupon bonds. 4. If you expect interest rates to rise you are better off owning short-term bonds. Statement one (1) is false. Statement two (2) is false. Statement three (3) is false. Statement four (4) is false
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