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Consider a 10% coupon bond, maturity period 3 years, and its face value $5,000. Assume this bond was purchased by Amy at the very
Consider a 10% coupon bond, maturity period 3 years, and its face value $5,000. Assume this \ bond was purchased by Amy at the very beginning of the bond issue with a plan to hold the bond \ for the whole maturity period and the yield to maturity was 12%. But, Amy has decided to sell \ the bond just after one year of holding when the yield to maturity is already increased from 12% \ to 15%, ceteris paribus
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