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Suppose a $ 1 0 , 0 0 0 face value bond is purchased for $ 7 , 6 8 8 . 5 2 with

Suppose a $

10, 000

face value bond is purchased for $

7, 688.52

with

20

years until maturity and has a coupon rate of

4 %

semi

-

annually.What yield will the bondholder realize if she holds onto it until maturity?

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