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You purchased a 4 - year bond with a coupon rate of 8 % paid annually, and a par value of $ 1 , 0

You purchased a 4-year bond with a coupon rate of 8% paid annually, and a par value of $1,000. You paid $880 for it, and you sold it for $930 one year later.
1. What the current yield of this bond?
Multiple choice 1 Question 5
8.00%
8.60%
9.09%
9.30%
8.89%
2. What is your capital gain rate?
Multiple choice 2 Question 5
5.68%
-5.38%
5.38%
5.00%
-5.68%
3. What is your total rate of return for this bond?
Multiple choice 3 Question 5
13.98%
14.77%
3.41%
21.51%
13.00%

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