Two years ago, you bought a 10 year, 6 semiannual coupon payment bond when its yield to maturity was 8 Right after you purchased this bond, the yield to maturity on this bond increased to 9 and stayed at the same level in the next two years You reinvested the coupon payments at the market rate of 9...

Purchase price of bond Purchase price of bond is calculated using PV function in Excel rate 8 YTM o ...

Two years ago, you bought a 10-year, 6% semiannual coupon payment bond when its yield-to-maturity was 8%.

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Two years ago, you bought a 10-year, 6% semiannual coupon payment bond when its yield-to-maturity was 8%. Right after you purchased this bond, the yield-to-maturity on this bond increased to 9% and stayed at the same level in the next two years. You reinvested the coupon payments at the market rate of 9%. You just sold the bond at 9% yield-to-maturity. What is your annualized holding period return? What is your capital gain/loss? Note: Remember that capital gains/losses are computed with respect to the price on the constant price-yield trajectory.