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Bond Prices

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At the beginning of the year, you bought a $1,000 par value corporate bond with a 6% annual coupon rate and a 10 year maturity date. When you bought the bond, it had an expected yield to maturity of 8%. Today the bond sells for $1,060.

A) What did you pay for the bond?
B) If you sold the bond at the end of the year, what would be your one-period return on the investment?

Please show all work.

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A) I would tell you the method in Excel again. Use the following formula in ...

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