A 65 coupon bond with 25 years left to maturity is priced

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A 6.5% coupon bond with 25 years left to maturity is priced to offer a 4.5% yield to maturity. You believe that in three years, the yield to maturity will be 12%. If this occurs, what would be the total return of the bond in dollars? Assume interest payments are paid semiannually.

Reference no: EM13616981

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