What rate of return do you expect to earn on your investment

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Reference no: EM131063030

Suppose you buy a 9.4 percent coupon bond today for $1,120. The bond has 5 years to maturity.

a. What rate of return do you expect to earn on your investment?

b. Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell. What price will your bond sell for?

Reference no: EM131063030

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