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One bond has a coupon rate of 8%, another a coupon rate of 14%. Both bonds have 10 -year maturities and sell at a yield

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One bond has a coupon rate of 8%, another a coupon rate of 14%. Both bonds have 10 -year maturities and sell at a yield to maturity of 8.2%. If their yields to maturity next year are still 8.2%, what is the spread between these two bonds' hold-to-maturity rates of return? You may calculate the spread as the higher rate of return minus the lower rate of return. You may answer in % form without a % sign. Answer: You buy an 8% coupon, 20-year maturity bond when its yield to maturity is 9%. A year later, the yield to maturity is 10%. What is your rate of return over the year? You may answer in percent form without the % sign

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