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An investor purchases a 9 - year, 7 % annual coupon payment bond priced at Par. After the bond is purchased and before the first
An investor purchases a year, annual coupon payment bond
priced at Par. After the bond is purchased and before the first coupon
is received, interest rates increase to The investor sells the bond
after five years. Assume that interest rates remain unchanged at
over the fiveyear holding period.
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