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Consider a $1000 par value bond with an 8 percent coupon rate. The bond pays interest annually. The yield on the bond today (ra) is

Consider a $1000 par value bond with an 8 percent coupon rate. The bond pays interest annually. The yield on

the bond today (ra) is 9.5% and there are 15 years remaining until maturity. If you buy the bond today and sell it one

year from today when the yield (ra) is 9%, what rate of return would you make (realized rate of return on the bond?

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