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An investor purchases 3% coupon, 30-year Treasury bonds at a YTM=3%. Interest rates rise to 5% immediately after the bonds are purchased. Compute the realized

An investor purchases 3% coupon, 30-year Treasury bonds at a YTM=3%. Interest rates rise to 5% immediately after the bonds are purchased. Compute the realized holding period yield over a 5-year investment horizon assuming that rates remain at 5%.

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