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Suppose that today, you buy a 10 percent annual coupon bond for $1,000. The bond has 12 years to maturity. Three years from now, the
Suppose that today, you buy a 10 percent annual coupon bond for $1,000. The bond has 12 years to maturity. Three years from now, the yield-to-maturity has declined to 8 percent and you decide to sell. What is your annual return for the holding period?
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