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Question: You bought a bond paying semi-annual coupons with face value of $1000 and the annual coupon rate of 9% two years ago for $ 1086.46. What was your holding period return (HPR) on the bond over the past two years, if the current YTM is 7%, the remaining maturity on the bond is 13 years and you were able to re-invest coupons in the past two years at 6%?

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Category:- Basic Finance
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