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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.
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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