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At time t you bought a perpetual bond that has a face value of $1000 and a coupon rate of 9.4%. Before you bought the
At time t you bought a perpetual bond that has a face value of $1000 and a coupon rate of 9.4%. Before you bought the bond, the previous owner received the annual coupon that morning before selling the bond to you. Suppose you paid $600 for this bond and held it for one year and during this year market interest rates increased by one-third. As a result your one-year holding period return is __________ percent.
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