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Suppose that you have just bought a bond with a coupon rate of 10 percent paid annually and $1,000 face value. This bond will mature

Suppose that you have just bought a bond with a coupon rate of 10 percent paid annually and $1,000 face value. This bond will mature in 15 years. You bought the bond when its yield to maturity was 8 percent. If yield to maturity of this bond becomes 12 percent after two years and you sell the bond right after receiving the second coupon, what will be the IRR from this investment?

A. 4.55% B. 4.34% C. 1.74% D. +0.07% E. +13.51%

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