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Peter has just bought a 7% coupon bond with a face value of $1,000 that matures in nine years and whose bond yield was quoted
Peter has just bought a 7% coupon bond with a face value of $1,000 that matures in nine years and whose bond yield was quoted at 5.5% at the time of the purchase. The coupon is paid annually. Peter plans on holding the bond for three years. If he wants to earn a 6.5% rate of return on this investment, what yield should the bond have at the end of his holding period?
The correct answer is 4.84%. I don't know how to get their when using a financial calculator. Can you please show me?
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