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Consider a 2-yr, $1000Par,5% coupon bond with annual coupon payments with a current market price of $980. Assume you bought the bond at $980 today

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Consider a 2-yr, $1000Par,5% coupon bond with annual coupon payments with a current market price of $980. Assume you bought the bond at $980 today and soldit one year later (before it matured) for its market price at the time of $1020. What is your realized yield after you sold the bond? 10.86%9.18%11.25%8.54% Page 9 of 25

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