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Bond Y is no callable, has 10 years to maturity, a 8% annual coupon, and a $1,000 par value. If you buy it, you plan to hold it for 4 years. You and the market have expectations that in 4 years the yield to maturity on a 6-year bond with similar risk will be 7%. If you are willing to pay $992 for Bond Y today, what is the required rate of return on your investment?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91266575

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