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What is his realized percentage return

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Question - A bond maturing on Oct 1 2023 has an annual coupon of 8%, and the expected return of investors (the yield) is 10%. It pays these coupons on Oct 1 every year, to eligible investors who hold the bond on Sep 30. Suppose an investor bought the bond on Oct 1, 2018 and sold the bond on Oct 1, 2019. What is his realized percentage return? and Explain the result.

Reference no: EM132715404

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