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What is the expected holding period return

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Consider a? two-year coupon bond with a face value of ?$100 and a coupon rate of 8% (the next annual coupon is due in one year). The one-year spot rate is 7%, the two-year spot rate is 8.9816%, and the bond is trading today for $98.409. What is the expected holding period return if you can sell the bond after the first coupon?

Reference no: EM133070855

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