CFA Level I sample question

CFA Level I Interest Rate Risk and Return question

Fixed Income / 10. Interest Rate Risk and Return

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Interest Rate Risk and Return sample question

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Fixed Income

10. Interest Rate Risk and Return

An investor buys a 4-year annual-pay 5.0% coupon bond at par value of 1,000 and sells it one year later for 990 immediately after receiving the first coupon. Ignoring taxes and coupon reinvestment, the one-year holding period return is closest to:

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