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Suppose you just purchased a bond (Face Value = $1,000) with 18 years to maturity that pays an annual coupon of $32.00 and is selling
Suppose you just purchased a bond (Face Value = $1,000) with 18 years to maturity that pays an annual coupon of $32.00 and is selling at par. Calculate the one-year holding period return for each of these two cases: Required: a. The yield to maturity is 4.70% one year from now. (Do not round intermediate calculations. Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) b. The yield to maturity is 2.10% one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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