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Business, 05.05.2020 08:14 Megcuttie101

Suppose you bought a bond with 5 periods to maturity at a per period yield of 8%. The Macaulay duration of this bond is 3.3 periods. You sell this bond after holding it for 4 periods. The per period reinvestment rate and the selling yield are both 7%. What is the per period return you get from holding this bond? A. larger than 8% B. smaller than 8% C. equal 8%

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Suppose you bought a bond with 5 periods to maturity at a per period yield of 8%. The Macaulay durat...
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