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Let's say an investor buys a 10-year bond with a 9% coupon rate. The market rate at the time of his purchase was 8%. The
Let's say an investor buys a 10-year bond with a 9% coupon rate. The market rate at the time of his purchase was 8%. The nominal price of the bond is 100 USD. If the market interest rate of the bond has not changed after one year, what will be the current return, capital gain or loss rate and rate of return if the investor sells this bond purchased one year later?
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