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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 11.75%,
its maturity is 15 years, and its yield to maturity is 11%.
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 12.76%. 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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