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Exactly one year ago you bought a five-year, $1,000 bond with an 7% coupon and a 5% yield to maturity (YTM). Just after you bought

Exactly one year ago you bought a five-year, $1,000 bond with an 7% coupon and a 5% yield to maturity (YTM). Just after you bought the bond, the YTM fell to 3%. If you hold the bond to maturity, what rate of return will you actually earn?

4.77%
8.42%
6.56%
9.13%

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