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Pinder Co issues a 5-year 5% p.a. semi-annual coupon bond with a face value of $1,000. At issue, the effective annual bond yield is 8%.
Pinder Co issues a 5-year 5% p.a. semi-annual coupon bond with a face value of $1,000. At issue, the effective annual bond yield is 8%. One year after issue, the bond yield decreases to 6%. If you had bought this bond at issue and sold it one year later just after receiving the coupon, what would be your total return over this period? (Round to the nearest two digits)
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