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One year ago, you purchased a 2-year bond with YTM of 5% and coupon rate of 4% (semiannual payments). When you are selling it today,
One year ago, you purchased a 2-year bond with YTM of 5% and coupon rate of 4% (semiannual payments). When you are selling it today, you notice that its YTM has decreased to 3% and bond price has changed accordingly. You 1-year holding period return is roughly:
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