Expect the yield to maturity on the bond

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Assume you have a 1-year investment horizon. A bond has a 10% coupon rate and pays the coupon once per year. The bond matures in 10 years and is priced to yield 8% this year. If you expect the yield to maturity on the bond to be 7% at the beginning of next year, what is your HPR, assuming you have received the coupon for this year?

Reference no: EM132515905

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