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Question 1 4 5 pts One year ago, an investor purchased a 1 0 - year 8 % annual coupon bond at par of $
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One year ago, an investor purchased a year annual coupon bond at par of $ Today with years to maturity the bond is priced to yield If the bond is sold, what is the total return to the investor interest plus appreciation for the year holding period?
Hint: The total return includes the coupon rate plus the appreciation or depreciation due to the change in rates. Therefore, calculate the current price based on the yield, and then calculate the total return over year based on that price and the coupon payment.
Your answer should be between and rounded to decimal places, with no special characters.
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