Suppose an investor can purchase a 5-year, 9% coupon bond that pays interest semiannually and the price

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Suppose an investor can purchase a 5-year, 9% coupon bond that pays interest semiannually and the price of this bond is $108.32. The yield to maturity for this bond is 7% on a bond equivalent basis. Assume the investor can reinvest the coupon payments at 5% compounded semiannually.

What is the total return on this bond if it held to maturity?

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Introduction To Fixed Income Analytics

ISBN: 9780470572139

2nd Edition

Authors: Steven V. Mann, Frank J. Fabozzi

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