1. You purchased an annual interest coupon bond one year ago, that had 9 years...
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Accounting
1. You purchased an annual interest coupon bond one year ago, that had 9 years remaining to maturity at that time. The coupon interest rate was 10% and the par value was $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the yield to maturity continued to be 8%, what is the annual total rate of return on holding the bond for that year? (2 marks)
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