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Can you please help me with this question? Given a 6-year investment horizon, calculate the Total Return for $1,000 face value of the bond (semiannual
Can you please help me with this question?
Given a 6-year investment horizon, calculate the Total Return for $1,000 face value of the bond (semiannual pay) in the following scenario:
Coupon: 7%, Initial YTM: 9%, Maturity: 10 years, Initial Price = 869.92, Coupons are projected to be reinvested at a rate of 10%, and at the end of the 6-year horizon the bond will sell at a YTM of 8%. What is the Total Return for this scenario over the investment horizon?
a)5.78%
b)4.78%
c)9.56%
d)8.52%
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