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You bought a 6.5 percent coupon, paid semi annually, 10 year maturity bond for $970. A year later, the bond price is $1,100. a) what
You bought a 6.5 percent coupon, paid semi annually, 10 year maturity bond for $970. A year later, the bond price is $1,100.
a) what is the yield to maturity on the bond today?
b) what is the yield to maturity on the bond in one year? what do you think influenced the change?
c) what is your rate of return over the year?
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