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You spend $ 9 8 5 to buy a bond with $ 1 , 0 0 0 face value, 5 % coupon rate, and remaining

You spend $985 to buy a bond with $1,000 face value, 5% coupon rate, and remaining maturity of 5 years.
(1) What will be the expected return if you plan to hold this bond to the maturity?
(2) What will be your answer for part (1), if the coupon interest is paid semi-annually?
(3) If the yield to maturity changes to 4.5% right after you receive the second year coupon interest payment, and you decide to sell this bond, what should be the selling price?
(4) What will be your two-year holding period return for part (3)?

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