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The price of the bond one year from today is $ (Round to the nearest...

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Finance

imageThe price of the bond one year from today is $ (Round to the nearest cent.) The holding period return on this investment is %. (Round to two decimal places.)

An investor is considering the purchase of a(n) 7.000%, 15-year corporate bond that's being priced to yield 9.000%. She thinks that in a year, this bond will be priced in the market to yield 8.000%. Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out. The price of the bond today is $ (Round to the nearest cent.)

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