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You buy a 10-year bond at $1000 par that pays $30 in interest once a year. You hold the bond for 1 year and collect
You buy a 10-year bond at $1000 par that pays $30 in interest once a year. You hold the bond for 1 year and collect the first coupon payment. By that time, the markets required return on the bond has risen from 3% to 4%, so the bonds price is $925.65. What is the total rate of return for the year?
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