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Consider a corporate bond that was purchased last year with a face value of $1,000, a 9% annual coupon rate and a 13-year maturity. At
Consider a corporate bond that was purchased last year with a face value of $1,000, a 9% annual coupon rate and a 13-year maturity. At the time of purchase, the bond had an expected yield to maturity of 8%. Calculate the rate of return that would have been earned for the past year if the bond was sold today for $1,072.23.
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