You just purchased a bond that pays annual coupons at a rate of 5%. The bond matures
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Question:
You just purchased a bond that pays annual coupons at a rate of 5%. The bond matures in 5 years. Currently the yield on the bond is 4.5%. Assuming that immediately after you buy the bond, the yield to maturity moves to 6%. What is your holding period return if you hold the bond to maturity?
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