What will be the annual rate of return on the bond

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Reference no: EM131033293

A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $96 and is selling at face value. What will be the annual rate of return on the bond if its yield to maturity at the end of the year is

a. 6%? Rate of return in % = ?

b. 9.6%? Rate of return in % = ?

c. 11.6%? Rate of return in % = ?

Reference no: EM131033293

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