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An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 9.6%.Bond C pays a 10% annual coupon, while Bond Z is a zero coupon bond.

a. What is the Expected Return?
b. The Risk
c. What is the Coefficient of Variation?

 

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