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Business, 19.03.2020 19:41 baeethtsadia

A newly issued bond pays its coupons once a year. Its coupon rate is 5%, its maturity is 20 years, and its yield to maturity is 8%. a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 7% by the end of the year. b. If you sell the bond after one year when its yield is 7%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%

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A newly issued bond pays its coupons once a year. Its coupon rate is 5%, its maturity is 20 years, a...
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