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You bought a 10% 10-year bond for $850. The bond has a face value of $1,000 and pays coupons semi-annually. After three years the bond

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You bought a 10% 10-year bond for $850. The bond has a face value of $1,000 and pays coupons semi-annually. After three years the bond is sold at $750. What is your annual rate of return over this 3-year holding period? Assume that you could invest coupons at 12% APR, semi-annual compounding

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