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I am looking to buy some bonds. These bonds mature in exactly seven years from today, have a 2% coupon that is paid semi-annually and
I am looking to buy some bonds. These bonds mature in exactly seven years from today, have a 2% coupon that is paid semi-annually and are priced to provide a Yield to Maturity today of 2.5%. Assume that I hold the bond for Two Years and am able at that time to sell them for PAR value. What is my annual rate of return for the two years that I held them?
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