Question
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 a 30-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?
Can you also explain how to put this problem in the TVM solver for TI-83 plus
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