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You just purchased a bond for $800. The bond has a face value of $1000, pays $50 in coupons each year, and has a yield
You just purchased a bond for $800. The bond has a face value of $1000, pays $50 in coupons each year, and has a yield to maturity of 7%. If the bond does not default (so you receive all the promised coupons and the face value at maturity), what will be your return? a. 5% b. 12% c. 7% d. 0%
a. 5%
b. 12%
c. 7%
d. 0%
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