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Consider the following DFG bond : current price 927 Euros, annual coupon rate of 2.8% (assume a face value of 1000 Euros). If you buy

Consider the following DFG bond: current price 927 Euros, annual coupon rate of 2.8% (assume a face value of 1000 Euros).

If you buy 50 DFG bonds and resell them 3 years later at a price of 960 Euros per bond, what will be your average annual compounded return over the 3 years? Assume that all coupons received were not reinvested, therefore did not earn additional interest.

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