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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 year investment horizon considers purchasing a year $ face value bond with a coupon rate for $ The yield to maturity is 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 and at the end of the planned investment horizon the bond will be selling to offer a yield to maturity of Please calculate the total return.
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