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

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Reference no: EM13925246

Suppose you buy a 7.2 percent coupon bond today for $1,140. The bond has 10 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: EM13925246

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