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Calculate the overall percentage rate of return

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Calculate the overall percentage rate of return (RET) of a coupon bond bought for $2000 and sold one year later for $1600. The bond has a face value of $2000 and a coupon rate of 8%.

C= coupon payment

Pt+1=Price of the bond one year later

Pt=Price of the bond today.

Reference no: EM133148763

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