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I'm buying a 10-year bond at $1,000 par that pays $80 in interest once a year. I will hold the bond for 1 year and
I'm buying a 10-year bond at $1,000 par that pays $80 in interest once a year. I will hold the bond for 1 year and collect the first coupon payment. By that time, the market's required return on the bond has risen from 10% to 12%, so the bond's price is $982.33. What is your total rate of return for the year?
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