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Today, you purchased a bond for $1,185.70. It is a 20-year bond with semiannual coupon payments, has a face value of $1,000 and 5% coupon
Today, you purchased a bond for $1,185.70. It is a 20-year bond with semiannual coupon payments, has a face value of $1,000 and 5% coupon rate. You own the bond for 7 years and sell it to Judy, whose yield to maturity is 6.6 percent. What is your HPY?
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