The bond has five years to maturity

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Suppose you buy a 9.4 percent coupon bond today for $1,120. The bond has 5 years to maturity.

a) What rate of return do you expect to earn on your investment?

b) Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell. What price will your bond sell for.

Reference no: EM131319590

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