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You buy a 5 year 10% coupon bond which pays annual coupons. When you buy the bond, the market interest rate is 9%. You decide
You buy a 5 year 10% coupon bond which pays annual coupons. When you buy the bond, the market interest rate is 9%. You decide to sell the bond 1 year later when the market interest rate is 10%. Assume you received one coupon payment. What is your rate of return?
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Affordable Housing Finance
Authors: K. Hawtrey
2009th Edition
0230555187, 978-0230555181
