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An investor with a 2 - year investment horizon considers purchasing a 8 - year $ 1 , 0 0 0 face value bond with

An investor with a 2-year investment horizon considers purchasing a 8-year $1,000 face value bond with a 4.0% coupon rate for $874.39. The yield to maturity is 6.0%. The coupon payments are made twice a year. The investor expects to be able to reinvest the coupon interest payments at an annual interest rate of 4.0% and at the end of the planned investment horizon the bond will be selling to offer a yield to maturity of 7.0% Please calculate the total return.
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