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Suppose that today you buy a 6% annual coupon bond for $1,150. a) The bond has 10 years to maturity. What rate of return do

Suppose that today you buy a 6% annual coupon bond for $1,150. a) The bond has 10 years to maturity. What rate of return do you expect to earn on your investment?

b) Two years from now, the YTM on your bond has declined by 1%, and you decide to sell. What price will your bond sell for?

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