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Compute the following for a 2-years to maturity, 10% semi-annualfixed coupon bond when its yield-to-maturity is 12% and price is 95.08 (assuming a face value
- Compute the following for a 2-years to maturity, 10% semi-annualfixed coupon bond when its yield-to-maturity is 12% and price is 95.08 (assuming a face value of $100):
- Total holding period return without reinvestment
(20+100-95.08)/95.08
- Annualized holding period return
- Total holding period return with reinvesting coupons at 12%
10*(1.12)^1+10+100
- Annualized holding period return with reinvestment
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