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The price of a three-year bond is $97.80 at the beginning of the year. Interest rates generally rise during the ensuing year, and the price
The price of a three-year bond is $97.80 at the beginning of the year. Interest rates generally rise during the ensuing year, and the price of a two-year bond is $95.65 at the end of the year. The three-year bond makes a $3.40 coupon payment during the year. Compute the holding-period return (HPR) for this investment for the year.
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