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    kinich_249's Avatar
    kinich_249 Posts: 1, Reputation: 1
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    #1

    May 10, 2011, 06:57 AM
    A bond that pays coupons annually is issued with a coupon rate of 4%
    Rate of Return. A bond that pays coupons annually is issued with a coupon rate of 4%, matu- rity of 30 years, and a yield to maturity of 7%. What rate of return will be earned by an investor who purchases the bond and holds it for 1 year if the bond's yield to maturity at the end of the year is 8%?
    RickJ's Avatar
    RickJ Posts: 7,762, Reputation: 864
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    May 10, 2011, 08:50 AM

    Check this out:
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