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Consider the following yields for corporate coupon bonds with a maturity between 7 and 10 years. These rates have remained constant since last year. Assume

Consider the following yields for corporate coupon bonds with a maturity between 7 and 10 years. These rates have remained constant since last year. Assume annual coupon payments and annual compounding throughout this problem.

Rating AAA AA A BBB BB
YTM 2.0% 3.37% 4.19% 4.8% 5.31%

Exactly one year ago, an investor bought a freshly issued 8.08.0%, 99-year, $$10001000-face value coupon bond from Wildcard AG at a time when Wildcard was rated BBB.

What did the investor pay for this bond? $$. (Round to the nearest cent.)

Today, Wildcard was upgraded to A. What is this bond worth today? $$(Round to the nearest cent.)

What is the percentage investment return that the investor achieves if he sells this bond today, right after the annual coupon has been paid? % (2 post-comma digits)

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