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What is the rate of return on each bond

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Question - One bond has a coupon rate of 5.0%, another a coupon rate of 8.0%. Both bonds pay interest annually, have 7-year maturities, and sell at a yield to maturity of 6.0%.

Required - If their yields to maturity next year are still 6.0%, what is the rate of return on each bond?

Reference no: EM132588688

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