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Five years ago, Rock Steady Corp issued a semiannual coupon bond with seven years until maturity. This bond was originally issued at par with a
Five years ago, Rock Steady Corp issued a semiannual coupon bond with seven years until maturity. This bond was originally issued at par with a $1,000 face value. The coupon rate on the bond is 8%. Today, the yield-to-maturity (YTM) is 10%. Assume an investor bought the bond at the time it was issued and sold it today. What is the holding period return for the five year period of investment?
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