Solved: If i keep the bond for the full 10 years until it matures, Business Economics

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If i keep the bond for the full 10 years until it matures

Suppose that I buy a 10-year bonds today for $1000 and the interest rate when the one is issued is 5 percent. The day after I buy the bond, the market interest rate on bonds rises to 7 percent. If I keep the bond for the full 10 years until it matures, what is the bonds average annual return?

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Business Economics: If i keep the bond for the full 10 years until it matures

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Business Economics: If i keep the bond for the full 10 years until it matures

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