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An investor buys a newly issued annual bond that pays its coupons once a year. Its coupon rate is 1 1 . 7 5 %
An investor buys a newly issued annual bond that pays its coupons once a year. Its coupon rate is
its maturity is years, and its yield to maturity is
a At what price did the investor buy the bond?
b A year later the investor sells the bond when the bond's yield to maturity is What price did the
investor sell the bond?
c What is bonds capital gains return capital appreciation
d What is the bond's current yield return income return
e What is the investor's one year holder period return return
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