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An investor purchased a $10,000, 5-year corporate note one year ago for $10,440. The note pays an annual coupon of $600. Over the past year,
An investor purchased a $10,000, 5-year corporate note one year ago for $10,440. The note pays an annual coupon of $600. Over the past year, the notes's annual yield-to-maturity has dropped by 1%. What total return did the investor earn over the year?
A. 8.5%
B. 9.0%
C. 9.5%
Please show detailed explanation, thank you very much!
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