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You own some bonds issued by Calamity Inc. These bonds have a face value of $1000, 7% coupon rate (paid semi-annually), current market value of
You own some bonds issued by Calamity Inc. These bonds have a face value of $1000, 7% coupon rate (paid semi-annually), current market value of $1,005, and will mature 20 years from now. You anticipate needing to sell the bonds two years from now. You expect the market price of the bond to be $1,110 at that time. If you sell your bond at this price, your holding period return would be ____%.
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