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Suppose you are given the information about the following four bonds that have face value...

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Finance

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Suppose you are given the information about the following four bonds that have face value of $100: Bond A: The 1-year zero-coupon bond has an YTM of 10% Bond B: The 2-year coupon-bond with annual coupon rate of 3% has an YTM of 2% Bond C: The 3-year zero-coupon bond has an YTM of 6% Bond D: The 4-year coupon-bond with annual coupon rate of 8% has an YTM of 7%. Assume that you buy Bond D today, hold if for 3 years and sell it after receiving the third coupon. What is the annualized expected return if you do not reinvest your coupons and the yield curve does not change

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