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Find the holding period return on given investment

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Reference no: EM131626275

Question: An investor is considering the purchase of an 8%, 18-year corporate bond that's being priced to yield 10%. She thinks that in a year, this bond will be priced in the market to yield 9%. Using annual compounding, find the price of the bond today and in one year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out.

Reference no: EM131626275

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