What is the investor''s rate of return

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1. A $20,000 bond with coupon rate of 6 %, maturing in 3 years, is traded at par.
(a) What is its approximate YTM?
(b) What is the investor's rate of return?

2. Using results from Exercises 9, 10, and 11, express the relationship between a bond's YTM and its rate of return when it is traded at par, premium, or discount.

Reference no: EM13876827

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