Question

You have bought a 20 year 5% coupon annual pay bond at a price of 107.5%....

You have bought a 20 year 5% coupon annual pay bond at a price of 107.5%. If the yield increases by125 points on your bond over the next year, what are you holding period returns for that year? Remember to include both the coupon and the change in price in your calculations.  

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