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You have bought a 30-year 2% coupon annual-pay bond at a price of 101.27%.   If the yield...

You have bought a 30-year 2% coupon annual-pay bond at a price of 101.27%.   If the yield decreases by 50 basis points on your bond over the next year, what are your holding period returns for that year? Remember to include both the coupon and the change in price in your calculations.

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Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago
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