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Business, 05.05.2020 06:04 kellyrasmussen8189

An investor is considering the purchase of a(n) 7.625 %, 18-year corporate bond that's being priced to yield 9.625 %. She thinks that in a year, this bond will be priced in the market to yield 8.625 %. Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out.

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An investor is considering the purchase of a(n) 7.625 %, 18-year corporate bond that's being priced...
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