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Suppose that an investor with a six-month investment horizon is considering purchasing a 20-year 5% coupon bond (face value=$1,000) selling at $1,100. The investor expects

Suppose that an investor with a six-month investment horizon is considering

purchasing a 20-year 5% coupon bond (face value=$1,000) selling at $1,100. The

investor expects that six months later the bond will be selling to offer a yield to

maturity of 4.2% . What is the holding period return of this bond? Assume

semiannual compounding.

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