You just purchased a bond that pays annual coupons at a rate of 5 % . The

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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?

Posted Date: May 18, 2024 06:16 PM

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You just purchased a bond that pays annual coupons at a rate of 5 % . The

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