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You buy a bond with a face value of $100 at a price of 98.58. It has a YTM of 3% and a three year

You buy a bond with a face value of $100 at a price of 98.58. It has a YTM of 3% and a three year maturity. The second to the last coupon on the bond is worth $1.26875 at the end of your holding period. How much of the holding period return comes from coupons, how much comes from the reinvestment of coupons, how much comes from capital gains or losses and how much is due to the return of principal?

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