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1) Suppose you purchase a 30 -year, zero-coupon bond with a yield to maturity of 5.9%. You hold the bond for five years before selling

1) Suppose you purchase a30-year, zero-coupon bond with a yield to maturity of 5.9%. You hold the bond for five years before selling it.

a.If thebond's yield to maturity is 5.9 %when you sellit, what is the annualized rate of return of yourinvestment?

b.If thebond's yield to maturity is 6.9 %when you sellit, what is the annualized rate of return of yourinvestment?

c.If thebond's yield to maturity is 4.9 %when you sellit, what is the annualized rate of return of yourinvestment?

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