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Today, you purchase a $1,000 face value bond with a coupon of 15% with annual payments that matures in exactly two years. The YTM today
Today, you purchase a $1,000 face value bond with a coupon of 15% with annual payments that matures in exactly two years. The YTM today is 20%. You receive the coupon in one year and then sell the bond. At that point in time, the YTM on the bond is 5%. What is your HPR if you hold the bond for one year starting today?
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