Derive the rate of return you would make for the six year

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You have a bond that has a ytm of .10, a coupon rate of 8% and a maturity of 20 years. Find its price. After 6 years you decide to sell it. During the purchase time and the selling time market rates go to 20%. At the time of selling the bond, ytm is 14%. Derive the rate of return you would make for the 6 year and one year period, if you experience the aforementioned.

Reference no: EM131020209

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