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An investor purchases a 1 2 - year, 6 . 9 % annual coupon payment bond at a price equal to par value. After the

An investor purchases a 12-year, 6.9% annual coupon payment bond at a price equal to par
value. After the bond is purchased and before the first coupon is received, interest rates increase
by 0.5%. The investor sells the bond after 7 years, Assume that interest rates remain unchanged at 6.9+0.5% over the 7-year holding period.
Assuming that all coupons are reinvested over the holding period, what is the investor's 7-year horizon yield?
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