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Suppose you purchase a 10-year treasury bond with a 7% annual coupon four years ago at par. Today the bonds yield to maturity has risen

  1. Suppose you purchase a 10-year treasury bond with a 7% annual coupon four years ago at par. Today the bonds yield to maturity has risen 9%

If you hold this bond to maturity, the internal rate of return (YTM) you will earn on your investment will be closest to:

  1. 9%

  1. 8.0%

  1. 7.0%

  1. 8.5%

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