Question

A. You buy a 10-year US Treasury Bond with a coupon interest rate of 5% and...

A. You buy a 10-year US Treasury Bond with a coupon interest rate of 5% and Face Value of $1,000. You decide to sell your bond four years later when market interest rates have fallen to 4%. Find the selling price of the bond.

B. Calculate the Annualized Holding Period Return on the investment. Show your work.

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