Suppose that you just bought a four-year 1000 coupon bond
Suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 6% when the market interest rate is 6%. One year later, the market interest rate falls to 4%.
What rate of return did you earn on the bond during the year?
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suppose that you just bought a four-year 1000 coupon bond with a coupon rate of 6 when the market interest rate is 6
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