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There is a 9% annual coupon bond which expires 5 years from now. Consider the bond was purchased at the beginning of the first year
There is a 9% annual coupon bond which expires 5 years from now. Consider the bond was purchased at the beginning of the first year and sold at the end of that year. The YTM at the beginning of year 1 was 6% and the rate did not change at the end of the year. What is the rate of return for this investment?
7.1% | ||
6.0% | ||
7.4% | ||
6.8% |
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