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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 10-year bond with a 4% coupon rate (paid annually) and a $1,000 face value at par. If the yield to maturity increases to 5% per year compounded annually one year from now, what is your 1-year holding period return?
A)-3.1%
B)3.1%
C)11.1%
D)-7.1%
E) Not enough information to calculate
Please do not use excel, just formulas if possible

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