A bond is issued with coupon

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Reference no: EM131045223

A bond is issued with a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rate of return will be earned will be earned by an investor who purchases the bond for $627.73 and holds it for 1 year if the bond's yield to maturity at the end of the year is 8%.

Reference no: EM131045223

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