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Determine the expected holding period return on the bond

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Question - An 8 per cent (per year) coupon bond that will mature five years from now is selling at $108.43, resulting in an annual yield of 6 per cent. Determine the expected holding period return on the bond if the yield curve is flat and specify its composition in the form of its current interest yield and its expected capital gain yield.

Reference no: EM133093551

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