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You are considering buying a bond that matures in one year. The current market price is $839.00. Par value is $1000. The coupon is 8%.
You are considering buying a bond that matures in one year. The current market price is $839.00. Par value is $1000. The coupon is 8%. Assuming the company does not default and pays off the bond at maturity, what would be your total return on the bond if you purchased it today at $839.00?
a. 22.45% b. 24.58% c. 28.73% d. 31.33%
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