What return did you realize on one-year investment

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You are buying from the financially questionable ABC Capital Corp. Their 8.5% coupon bond matures in 8 years. You bought the bond earlier today, when it yielded 28% APR. How much did you pay for the bond? After holding the bond one year, you need to sell it. ABC Capital has returned to a more solid financial footing so that the interest rates have fallen to 14% APR, at what price will you sell the bond? What return did you realize on this one-year investment?

Reference no: EM132016428

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