Suppose you buy a 68 percent coupon bond today for 1120 the


Suppose you buy a 6.8 percent coupon bond today for $1,120. The bond has 8 years maturity. What rate of return do you expect on your investment? Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell. What price will your bond sell for?

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Financial Management: Suppose you buy a 68 percent coupon bond today for 1120 the
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