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You buy a 10 years, 8% coupon bond (pay annually), YTM is 10.4%. The duration of the bond is 7. You hold the bond for

You buy a 10 years, 8% coupon bond (pay annually), YTM is 10.4%. The duration of the bond is 7. You hold the bond for 8 years and realized a return that is greater than 10.4%. What could have happened to the interest rate?

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