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Suppose that you are holding a 5% coupon bond maturing in a year with face value of $1000. The current yield to maturity is 8%. If the interest rate on one year bonds rises from 8% to 10% over the course of the year, what is the one period rate of return on the bond?

 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91229779

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