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You buy an 8y bond that has par value of $1000, a YTM of 6% and a 5% coupon (paid annually). In a year, after
- You buy an 8y bond that has par value of $1000, a YTM of 6% and a 5% coupon (paid annually). In a year, after the YTM declines to 4% and you also get your first coupon payment, you sell the bond. What is your holding period return?
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Answer To calculate the holding period return we need to find the price of the bond after one year a...
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
7th Edition
0073368717, 978-0073368719
