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You have purchased a bond that was trading at a discounted $ 9 0 0 three years ago. You have just sold it for $

You have purchased a bond that was trading at a discounted $

900

three years ago. You have just sold it for $

1000,

which is its par value. The coupon rate was

5 % .

Assume that reinvestment rates have remained constant at

5 % .

What is your Holding Period Return

(

HPR

) ?

Round to two decimals

Answer:

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