What is his eight-year holding period yield

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Reference no: EM131530945

An 8-year corporate bond sold to investors at par ($1000) with a 10 percent coupon rate is called four years later at par plus one year's coupon income. At the time of call, prevailing rates on comparable securities were 8 percent. If the bond's holder reinvested the call price at 8 percent for 4 years, what is his 8-year holding period yield? '

Reference no: EM131530945

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