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An investor buys a 8.5% coupon bond (assume face value of $1000) maturing in 10 years for $980. After holding the bond for 2 years
An investor buys a 8.5% coupon bond (assume face value of $1000) maturing in 10 years for $980. After holding the bond for 2 years the bond is sold for $1100. Also, at the end of 2 years the future value of reinvested coupon interest is $180. What is the ANNUAL total return (assume semi-annual compounding) during the two year period? Group of answer choices A. 2.92% B. 6.90% C. 13.80%Guessed D. 15.31%
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