Find out expected market return

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Two years ago, an investor invested her available cash £10,000 in bonds of company 'chess'. These bonds were issued at par and have a face value of £1,000 per bond. Right now, these bonds, have a remaining maturity of 4 years, an annual coupon rate of 3% , they are trading at 104.76% and have a volatility of 3.77%. The risk-free rate is 2% and the expected market return is 8%.

Reference no: EM133115753

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