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At the beginning of the year, an investor purchased a 2- year bond that pays an annual coupon of $100 and principal of $1000 after

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At the beginning of the year, an investor purchased a 2- year bond that pays an annual coupon of $100 and principal of $1000 after two years. The yield to maturity was 5%. At the end of the first year (after the payment of the coupon) the price was $1040. Calculate the holding period return of the investor. a. 4.3%. b. -4.3%. c. -4.7% . d. 5%. PT + DT - Po TT Bond value = Coupon = (1 + r) Par value + (1 + r)? Po

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