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4. The U.S. Treasury issues a 10 -year, $1000 par, zero-coupon bond. a. What is the orginal issues price if comparable yields are 7% ?
4. The U.S. Treasury issues a 10 -year, $1000 par, zero-coupon bond. a. What is the orginal issues price if comparable yields are 7% ? b. If the comparable yield remains at 7%, what will the bond price be after 3,6 , and 9 years have passed? c. What are the annualized returns if the bond is sold after 3,6 , or 9 years? d. See the chart below for the term structure of interest rates at the time the bond was issued. If this term structure does not change, what annualized return will the investor earn if the bond is sold after 3,6 , or 9 years
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