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What is the holding period yield for an investor who pays $1,150 for a three-year bond with a $1,000 face value and a 5% coupon

  1. What is the holding period yield for an investor who pays $1,150 for a three-year bond with a $1,000 face value and a 5% coupon and sells the bond two years later for $1,420?
    1. 4.00%
    2. 15.26%
    3. 6.87%
    4. 7.46%

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