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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 year bond with a coupon rate of paid annually, and a par value of $ You paid $ for it and you sold it for $ one year later.
What the current yield of this bond?
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What is your capital gain rate?
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What is your total rate of return for this bond?
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