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You just purchased a bond for $800. The bond has a face value of $1000, pays $50 in coupons each year, and has a yield to maturity of 7%. If the bond does not default (so you receive all the promised coupons and the face value at maturity), what will be your return?

You just purchased a bond for $800. The bond has a face value of $1000, pays $50 in coupons each year, and has a yield to maturity of 7%. What is the coupon rate?

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