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P10.9 (similar to) Assume that you pay $75518 for a long-term bond that carries a...

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P10.9 (similar to) Assume that you pay $75518 for a long-term bond that carries a coupon of 6.6%. Over the course of the next 12 months, interest rates drop sharply. As a result, you sell the bond at a price of $910.32. a. Find the current yield that existed on this bond at the beginning of the year. What was it by the end of the one-year holding period? b. Determine the holding period return on this investment. (Hint: See Chapter 5 for the HPR formula.) a. The current yield that existed on this bond at the beginning of the year is % Round to two decimal places

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