What is the holding-period yield

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Question 1: An investor is interested in purchasing a 30-year U.S. government bond carrying an 8 percent coupon rate. The bond's current market price is $935 for a $1000 par value instrument. Suppose the investor sells the bond at the end of 13 years for $970. What is the holding-period yield? What is the effective yield?

Reference no: EM132495094

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