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Suppose that you buy a 14-year zero-coupon bond today with a face value of $100 and that the yield curve is currently flat at 7.5%

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Suppose that you buy a 14-year zero-coupon bond today with a face value of $100 and that the yield curve is currently flat at 7.5% pa nominal. Immediately after purchasing the bonds, the yield curve becomes flat at 6.5% pa nominal. Assuming semi-annual compounding and that the bond is sold after 6 years, what is the annualized holding period yield on this bond? 5.753% 8.253% 7.500% 5.174% 8.841%

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