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Please include formulas used and/or calculator keystrokes 1. Suppose you have just bought at market price (you have to determine this price) an 8% coupon
Please include formulas used and/or calculator keystrokes
1. Suppose you have just bought at market price (you have to determine this price) an 8% coupon annual bond with a maturity value of $1000, and a time to maturity of 20 years, which is priced with a yield to maturity of 9%. One year later the yield to maturity is expected to be 10%. What is your total return over the year that you will hold the bond? (10 points)Step by Step Solution
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