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18. At the beginning of the year, you have just purchased a 12-year zero-coupon bond with a yield to maturity of 7% and a par

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18. At the beginning of the year, you have just purchased a 12-year zero-coupon bond with a yield to maturity of 7% and a par value of $1,000. What is your retum (rounded to two decimal places) if you hold the bond for one year and then sell it immediately afterwards? Assume the yield to maturity on the bond is 8% at the time you sell. Yield to maturity is expressed as an annualized percentage rate compounded annually. A. 3.41% B. 7.00% C. 7.43% D. 8.00% E. None of the other answers are correct

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