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An investor buys a 5-year bond with a coupon rate of 6.3% at a price that reflects a yield to maturity of 6.2%. Interest is
An investor buys a 5-year bond with a coupon rate of 6.3% at a price that reflects a yield to maturity of 6.2%. Interest is paid semiannually. Exactly one year later, after receiving the second coupon payment, the investor sells the bond for 96% of par value.
What was the investors rate of return on the bond investment for the year?
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