Calculate his rate of return

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Reference no: EM131603081

Andrea purchased a US government T-note two years ago with a 5.5% annual coupon with a YTM=3%, maturing in 8 years. a- Now, he's considering to sell it. If the current rate is 2%. What is the rerun on his investment, if any? b- Suppose, the bond is callable in three years at 1050. If he decides to hold his bond, calculate his rate of return?

Reference no: EM131603081

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