You spend $ 9 8 5 to buy a bond with $ 1 , 0 0 0
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Question:
You spend $ to buy a bond with $ face value, coupon rate, and remaining maturity of years.
What will be the expected return if you plan to hold this bond to the maturity?
What will be your answer for part if the coupon interest is paid semiannually?
If the yield to maturity changes to right after you receive the second year coupon interest payment, and you decide to sell this bond, what should be the selling price?
What will be your twoyear holding period return for part
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