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exactly 9 years to maturity 8% coupon, semiannually 9% yield to maturity $100 par value Suppose you buy the bond today and exactly in one
exactly 9 years to maturity
8% coupon, semiannually
9% yield to maturity
$100 par value
Suppose you buy the bond today and exactly in one year later, the yield on this bond increases from 9% to 10%. If you sell the bond immediately after the yield increases, what would be your one-year return on investment? Assume that you reinvested any coupon payments are the yield to maturity. ( the 9%)
a. 3.61%
b. 4.13%
c. 3.99%
d. 1.98%
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