Ch $02$: End$-$of$-$Chapter Problems $-$ The Domestic and International Financial Marketplace

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$7.$ Problem $2-7$

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One year ago, you purchased a rare Indian$-$head penny for $$16,000.$ Because of the recession and the need to generate current income, you plan $t$ the coin and invest in Treasury bills. The Treasury bill yield now stands at $8$ percent, although it was $7$ percent one year ago. A coin dealer has offel pay you $$14,900$ for the coin. Compute the holding period return on this investment. Round your answer to two decimal places.

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