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Suppose that today you buy a bond with an annual coupon of 7 percent for $ 8 0 0 . the bond has 1 7
Suppose that today you buy a bond with an annual
coupon of percent for $the bond has years to maturity and makes semiannual payments.
What rate of return do you expect to earn on your
investment?
What is the current yield of your investment?
Three years from now, the YTM on your bond has increased by percent and you have decided to sell. What price will your bond sell for?
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