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Consider a bond paying a coupon rate of 20% per year, compounded annually, when the market...

Consider a bond paying a coupon rate of 20% per year, compounded annually, when the market interest rate (YTM) is only 10% per year. The market interest rate (return for an investment of like risk) will remain at 10% for the next two years.   The bond has two years until maturity.   What is the HOLDING PERIOD RETURN (or rate of return) over the first year on this bond?  

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