You hold the bond for one year and then sell it if similar


You purchase a $1,000 coupon bond at par. The bond has a coupon rate of 2% and a maturity of 2 years. You hold the bond for one year and then sell it. If similar bonds are yielding 6% when you sell the bond, calculate your return.

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Finance Basics: You hold the bond for one year and then sell it if similar
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