Bond price observations: Assume that the bond pays an annual coupon at the end of each year of \\( \\$ 60 \\). Assume that to receive the end-of-year coupon you must have purchased the bond at the beginning of the year. 1. Compute the 1-year rates of return on the bond for each of the periods represented in the data. 2. Compute the average multi-period rate of return if you had purchased the bond at time 0 and sold it at time 2 . Do this for each of the following methods of computing such a return (a) Arithmetric mean yield (b) Geometric mean yield Bond price observations: Assume that the bond pays an annual coupon at the end of each year of \\( \\$ 60 \\). Assume that to receive the end-of-year coupon you must have purchased the bond at the beginning of the year. 1. Compute the 1-year rates of return on the bond for each of the periods represented in the data. 2. Compute the average multi-period rate of return if you had purchased the bond at time 0 and sold it at time 2 . Do this for each of the following methods of computing such a return (a) Arithmetric mean yield (b) Geometric mean yield
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