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You purchased a 10-year semi-annual interest coupon bond one year ago. Its coupon rate was 6% and its par value was $1,000 . At the
You purchased a 10-year semi-annual interest coupon bond one year ago. Its coupon rate was 6% and its par value was $1,000. At the time you had purchased the bond, the yield to maturity was 5%. If you sold the bond after one year and the bonds yield to maturity had changed to 4% after one year, your annual total rate of return on holding the bond for that year would have been __________.
If you could use the financial calculator functions to show your work, that would be much appreciated.
(*Please note that this is semiannual payments!)
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