You hold an annual coupon bond for 1 year, receiving the 0.14 coupon before selling. When bought it had 11 years to maturity, and the YTM was 0.08. Over the year, interest rates ROSE by 0.009 What is the total holding period return for this investment? 0.0276 0.0300 0.0291 0.0283 0.0267

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.