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Assume you purchased a three-year, 9% coupon bond for $950. It pays annual coupon payment. Suppose interest rates have decreased 1.50% per year from you
Assume you purchased a three-year, 9% coupon bond for $950. It pays annual coupon payment. Suppose interest rates have decreased 1.50% per year from you purchased the bond. Suppose that you sold the bond two years later right after receiving the second coupon payment. What was your rate of return from your investment over the holding period?
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