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You purchase a 10 year bond with an annual fixed coupon rate of 7% and a par value of $1,000, when the yield to maturity

You purchase a 10 year bond with an annual fixed coupon rate of 7% and a par value of $1,000, when the yield to maturity on such bonds is 6%. You hold the bond for a year and then sell it. Assume the yield to maturity on the bond falls to 5.5% by the time you sell. What is your holding period return?

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