Question
A tenyear, zerocoupon bond with a yield to maturity of 8% has a $1,000 face value of . An investor purchases the bond when it
A tenyear, zerocoupon bond with a yield to maturity of 8% has a $1,000 face value of . An investor purchases the bond when it is initially traded, and then sells it four years later. What is the rate of return of this investment, assuming the yield to maturity does not change?
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Corporate Finance Investment And Advisory Applications
Authors: Jesse McDougall, Patrick Boyle
1st Edition
1530116597, 9781530116591
