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Suppose you buy a three year coupon bond with a current yield to maturity of 5%. The face value of the bond is $1,000. The
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Suppose you buy a three year coupon bond with a current yield to maturity of 5%. The face value of the bond is $1,000. The bond pays annual coupons, and the coupon rate is 6%. A year later, the yield to maturity is 4%. What is the one year holding period return on the bond?.
Please write the answer out on paper. Thank you.
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