[Solved] Suppose You Are Holding a 5 Percent Coupon Bond Maturing

Question 68
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Suppose you are holding a 5 percent coupon bond maturing in one year with a yield to maturity of 15 percent. If the interest rate on one-year bonds rises from 15 percent to 20 percent over the course of the year,what is the yearly return on the bond you are holding?

A)5 percent
B)10 percent
C)15 percent
D)20 percent

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