What is the investor holding period yield

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An investor is interested in purchasing a 20-year government bond carrying a 10% annual coupon rate with interest paid twice a year. The bond's current market price is $875 for a $1000 par value instrument. If the investor buys the bond at the going price and holds to maturity, what will be his or her yield to maturity? Support the investor sells the bond at the end of 10 years for $950. What is the investor holding period yield?

Reference no: EM132746977

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