Assume a flat yield curve of 6%. A three-year 100 bond is issued at par paying an
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Assume a flat yield curve of 6%. A three-year £100 bond is issued at par paying an annual coupon of 6%. What is the portfolio manager’s expected return if he predicts that the yield curve one year from today will be a flat 7%?
A. 4.19%
B. 6.00%
C. 8.83%
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