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You buy a 1 0 - year bond with a 4 % coupon rate ( paid annually ) and a $ 1 , 0 0
You buy a year bond with a coupon rate paid annually and a $ face value at par. If the yield to maturity increases to per year compounded annually one year from now, what is your year holding period return?
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E Not enough information to calculate
Please do not use excel, just formulas if possible
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