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Find his expected yield assuming the bond is sold in 2 year

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Reference no: EM13321262

David Hoffman purchases a $1,000 20-year bond with an 8 percent coupon rate (annual payments). Yields on comparable bonds are 10 percent. David expects that, 2 years from now, yields on comparable bonds will have declined to 9 percent. Find his expected yield, assuming the bond is sold in 2 years.

Reference no: EM13321262

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