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The current interest rate is 4%. You buy a 5-year zero-coupon bond with face value $100. One year later, the interest rate is 2% and

The current interest rate is 4%. You buy a 5-year zero-coupon bond with face value $100. One year later, the interest rate is 2% and you sell the bond. What was your annualized holding period return (ann. HPR)? (a) -11.03% (b) 13.41% (c) 11.52% (d) 12.40%

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