You buy a 10-year bond with a 4 coupon rate paid annually


You buy a 10-year bond with a 4% coupon rate (paid annually) and a $1,000 face valueat par. If the yield to maturity increases to 5% per year compounded annually one yearfrom now, what is your 1-year holding period return?

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Finance Basics: You buy a 10-year bond with a 4 coupon rate paid annually
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