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If the current price of a 12-year 3.5% coupon bond which pays semiannually is $82.60, what is its yield to maturity? If you purchased this
If the current price of a 12-year 3.5% coupon bond which pays semiannually is $82.60, what is its yield to maturity? If you purchased this bond, held it for two years and the yield to maturity rose to 6.5% at what would its new price be? If you then sold the bond what effective rate of return would you have earned on this two-year investment?
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