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Suppose you purchase a 2 0 - year Treasury bond with a 7 % annual coupon, initially trading at par. In 1 2 years '
Suppose you purchase a year Treasury bond with a annual coupon, initially trading at par. In years time, the bond's yield to maturity has risen to EARAssume $ face value bond.
a If you sell the bond now, what internal rate of return will you have earned on your investment in the bond?
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