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Consider an annual coupon bond with a face value of $100, an annual coupon rate...
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Consider an annual coupon bond with a face value of $100, an annual coupon rate of 20%, time‐to‐maturity of 6 years and an annualized yield‐to‐maturity of 4%. What would be the holding period return of buying the bond today and selling it after one year if interest rates in one year’s time are such that the bond’s yield‐to‐maturity is 5%?
67%
0%
33%
0%