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You buy a 1 0 - year $ 5 0 0 0 bond, redeemable at par, with semi - annual coupons at j 2 =
You buy a year $ bond, redeemable at
par, with semiannual coupons at j The
bond is bought to yield j Two years
later, you decide to sell the bond. What rate of
return do you earn for the years that you
owned the bond if after the year period, yield
rates have
a Remained at j
b Decreased to j
c Increased to j
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