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An investor is considering the purchase of a ( n ) 6 . 0 0 0 % , 1 5 - year corporate bond that's

An investor is considering the purchase of a(n)6.000%,15-year corporate bond that's being priced to yield 8.000%. She thinks that in a year, this bond will be priced in the market to yield 7.000%. Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out.

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