Solution-Calculate the total return

Calculate the total return

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Assume that you purchase a 10-year $1,000 par value bond, with a 5% coupon, and a yield of 9%. Immediately after you purchase the bond, yields fall to 7% and remain at that level to maturity. Calculate the total return, if you hold the bond for 5 years and then sell. interest annual.

Reference no: EM131044488

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Calculate the total return

Reference no: EM131044488

Reference no: EM131044488

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