What is your one period rate of return on the bond

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Reference no: EM131313998

You buy a 3-year, 10% coupon bond with face value $1000 today. The market interest rate currently is 10% also.

a. You hold the bond for a year and sell it off a year later when the interest rate is 12%. What is the market price of the bond a year later?

b. What is your one period rate of return on the bond?

Reference no: EM131313998

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