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Suppose you have a 1-year horizon and purchase a 5-year (annual) coupon bond. If the price of the bond on the horizon date is the
Suppose you have a 1-year horizon and purchase a 5-year (annual) coupon bond. If the price of the bond on the horizon date is the same as the price you paid, your ROR will equal:
the bond s current yield.
the bond s yield-to-maturity at purchase.
the bond s yield-to-maturity when sold.
the inflation rate between the purchase and sale dates.
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