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Answer ALL the following questions accordingly and accurately with correct answers. Provide a detailed explanation to prove the answer. ANSWER ALL THE QUESTIONS LISTED!!! Assume

Answer ALL the following questions accordingly and accurately with correct answers. Provide a detailed explanation to prove the answer. ANSWER ALL THE QUESTIONS LISTED!!!

image text in transcribed Assume that you pay $918.04 for a long-term bond that carries a coupon of 10.4%. Over the course of the next 12 months, interest rates drop sharply. As a result, you sell the bond at a price of $1,105.49. a. Find the current yield that existed on this bond at the beginning of the year. What was it by the end of the one-year holding period? b. Determine the holding period return on this investment. (Hint: See Chapter 4 for the HPR formula.) a. The current yield that existed on this bond at the beginning of the year is \%. (Round to two decimal places.) The current yield by the end of the one-year holding period is %. (Round to two decimal places.) b. The holding period return on this investment is %. (Round to two decimal places.)

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