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A ten-year zero coupon bond pays $1,000 in ten years (with no other payments). If you hold this bond for one year, it will not

A ten-year zero coupon bond pays $1,000 in ten years (with no other payments). If you hold this bond for one year, it will not pay any coupons, but will become a nine-year bond that pays $1,000 in nine years.\ \ Assuming you use a constant discount rate of 10% per year, what is the holding period return from holding this bond for one year?\ \ Hint: start by pricing both the ten-year and nine-year bond.\ \ Question 4 options:\ \ 15%\ \ \ 10%\ \ \ 7.5%\ \ \ 5%

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