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ABC Ltd., 1 Oct 2015 issued a 20 year zero coupon bond. Now is 1 Oct 2019 and the current yield to maturity for the

ABC Ltd., 1 Oct 2015 issued a 20 year zero coupon bond. Now is 1 Oct 2019 and the current yield to maturity for the bond is 5% p.a.

What is the price per $100 for this bond now (1 Oct 2019)? and If, over the next year, market rates for this bond were to recover to 4% p.a. what rate of return would an investor who purchased the bond today have earned if they sold the bond on 1 Oct 2020?

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