Question: (b) A 10-year, 7% coupon bond with a face value of $1,000 is currently selling for $831.64. Compute your rate of return if you sell

(b) A 10-year, 7% coupon bond with a face value of

(b) A 10-year, 7% coupon bond with a face value of $1,000 is currently selling for $831.64. Compute your rate of return if you sell the bond next year for $881.20. (4 Marks)

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