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Can you please help me solve this problem? Given a 7-year investment horizon, calculate the Total Return for $1,000 face value of the bond (semiannual
Can you please help me solve this problem?
Given a 7-year investment horizon, calculate the Total Return for $1,000 face value of the bond (semiannual pay) in the following scenario:
Coupon: 8%, Initial YTM: 9%, Maturity: 12 years, Initial Price = 927.52, Coupons are projected to be reinvested at a rate of 10%, and at the end of the 7-year horizon the bond will sell at a YTM of 11%. What is the Total Return for this scenario over the investment horizon?
a)10.78%
b)9.78%
c)8.58%
d)7.52%
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