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You pay $100 for a 10-year, 6-percent coupon bond with a face value of $100. You intended to hold the bond for three years. That
You pay $100 for a 10-year, 6-percent coupon bond with a face value of $100. You intended to hold the bond for three years. That is, you are going to buy a 10-year bond and then two years later, youll sell an 8-year bond. What is your return from holding this bond, assuming that the interest rate doesnt change - i = 0.06?
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