Annual total rate of return on holding the bond

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Reference no: EM132017255

You purchased a 5-year annual interest coupon bond one year ago. Its coupon interest rate was 6% and its par value was $1,000. At the time you purchased the bond, the YTM was 4%. If you sold the bond after receiving the first interest payment and the bond's YTM had changed to 3%, what would have been your annual total rate of return on holding the bond for that year?

Reference no: EM132017255

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