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You purchase a 5.0% coupon (paid annually), $1,000 face value bond with a maturity of 8 years for a price of $1,000 and are going
You purchase a 5.0% coupon (paid annually), $1,000 face value bond with a maturity of 8 years for a price of $1,000 and are going to reinvest all the interest payments. If interest rates fall to 4.0% right after you purchase the bond, what is the return on your investment in the bond if you hold it until it matures?
Group of answer choices
4.74%
4.85%
5.15%
5.00%
5.52%
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