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Calculate the total return for a twenty-year bond purchased at $120.8 per $100 par value that pays a 10% coupon rate. The bond holder plans
Calculate the total return for a twenty-year bond purchased at $120.8 per $100 par value that pays a 10% coupon rate. The bond holder plans to hold the bond for eight years. Assume semiannual reinvestment rate is 6%; a comparable 12-year maturity bond will be priced to yield 10% (5% semiannually) to maturity. Calculate the total return for a twenty-year bond purchased at $120.8 per $100 par value that pays a 10% coupon rate. The bond holder plans to hold the bond for eight years. Assume semiannual reinvestment rate is 6%; a comparable 12-year maturity bond will be priced to yield 10% (5% semiannually) to maturity
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