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Question
The Price Perpetual Bank has purchased a bond that has a coupon rate of 5.5% and a face value of $1,000. It has 11 years to maturity and is currently selling in the market for $887.52. The bond makes annual coupon payments. The Price Perpetual Bank is planning on selling this bond at the end of 5 years for $1,036.50 (ex-interest). What is the holding period return on this bond?
A. 5.5%
B. 7%
C. 11%
D. 9.82%
E. None of the options is correct
Answer
This answer is hidden. It contains 1 characters.
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