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Suppose you paid $990 to buy a 30-year 10% coupon bond with annual payment and plan to hold it for 10 years. Your forecast is
Suppose you paid $990 to buy a 30-year 10% coupon bond with annual payment and plan to hold it for 10 years. Your forecast is that the bonds yield to maturity will be 9% when it is sold and that the reinvestment rate on the coupons over the ten - year holding period will be 7%. Whats your annualized compound rate of return? A. 5.5% B. 2.4% C. 9.59% D. 7.59%
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