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In year 0 you buy a 2-year 4% coupon annual paying bond, with face value equal to $1000, and a YTM of 5%. After

In year 0 you buy a 2-year 4% coupon annual paying bond, with face value equal to $1000, and a YTM of 5%. After 1 year, the YTM falls to 4% and you sell the bond. What is the annualized holding period return on your investment?

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