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Two years ago you invested in a 6% coupon bond payable annually (face value is 1000 euro) when the market interest rate was 5.5%. At
Two years ago you invested in a 6% coupon bond payable annually (face value is 1000 euro) when the market interest rate was 5.5%. At the time of purchase the bond had remaining maturity if 5 years. Now the interest rate is 6.6% and you want to sell the bond after receiving the second coupon payment. Which of the following statements are correct?
Select one or more:
a. Holding period return is 8.1%
b. Effective annual yield is 4%
c. Effective annual yield is 1.1%
d. Holding period return is 2.2%
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