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Consider a three - year 6 % annual bond purchased at par by an investor with a one - year investment horizon. If the YTM

Consider a three-year 6% annual bond purchased at par by an investor with a one-year investment
horizon. If the YTM increases from 6% to 7% after purchase and the bond is sold after one year, what
is the horizon yield for this investor? How does it compare against the initial YTM? Why?
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