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Find the annualized expected holding period return for a coupon bond that pays a $158 coupon every six months and has a current price of
Find the annualized expected holding period return for a coupon bond that pays a $158 coupon every six months and has a current price of $912. The expected price in 4 years is $1081. Assume the bond will pay its next coupon in six months and in 4 years you will collect a $158 and sell the bond for $1081.
The answer given was 25.06 but I'm not sure how to get there.
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