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You buy a bond from ABC Corporation that has a 12 year, 6% coupon, $1000 pay value for a price of $1000. The bond pays
You buy a bond from ABC Corporation that has a 12 year, 6% coupon, $1000 pay value for a price of $1000. The bond pays interest semi-annually. One year from now, interest rates have risen by 2%, so that they are now at 8% per year. What rate of return did you earn on this bond?
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