c) Suppose you purchase a 10-year bond with 6% annual coupons. You hold the bond for...
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c) Suppose you purchase a 10-year bond with 6% annual coupons. You hold the bond for four years, and sell it immediately after increasing the fourth coupon. If the bond's yield to maturity was 5% when you purchased and sold the bond, what cash flows will you pay and receive from your investment in the bond per $1000 face value? (4m) c) Suppose you purchase a 10-year bond with 6% annual coupons. You hold the bond for four years, and sell it immediately after increasing the fourth coupon. If the bond's yield to maturity was 5% when you purchased and sold the bond, what cash flows will you pay and receive from your investment in the bond per $1000 face value? (4m)
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