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Suppose that you purchased a bond at face value. The YTM was 5%, the face value was $1,000, and the maturity was 10 years. In
Suppose that you purchased a bond at face value. The YTM was 5%, the face value was $1,000, and the maturity was 10 years. In two years you decide to sell the bond. At that time the YTM on similar bonds is 4%. However, you have reinvested the first coupon at 10%. What is the ANNUAL rate of return on this strategy
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