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You buy a 10-yr bond for $10,000 with a coupon rate of 3%. You hold the bond for 9 years. The yield on 10-yr bonds falls to 2% over that time. You decide to sell your bond a year before it matures

You buy a 10-yr bond for $10,000 with a coupon rate of 3%. You hold the bond for 9 years. The yield on 10-yr bonds falls to 2% over that time. You decide to sell your bond a year before it matures. What will the price be when you sell the bond? What is your rate of return? Do you have a capital gain or loss? How much is it?

Apr 12 2021 View more View Less

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