Question: A bond with exactly four years until maturity paying 3.5% pa. coupons semi-annually and with a face value of $100 was purchased at a yield

A bond with exactly four years until maturity paying 3.5% pa. coupons semi-annually and with a face value of $100 was purchased at a yield of 4.25% pa. The bond was sold exactly one year later for a yield of 4% pa. All coupons were reinvested at 3.5% p.a. Calculate the holding period yieid on this bond

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