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Last year, you purchased a $1,000 par value bond with a 7.5% annual coupon and a 20-year maturity. At the time of the purchase, it

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Last year, you purchased a $1,000 par value bond with a 7.5% annual coupon and a 20-year maturity. At the time of the purchase, it had an expected YTM of 7%. After receiving the coupon, you sold the bond today for $1040. What is your return rate in one year? (Hint: find out how much did you pay for the bond last year?) Select one: a. 12.75% b. 10.64% C. 2.09% d. 5.89% e. 3.37%

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