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Alex purchased a 10-year, zero-coupon bond today with a yield to maturity of 7.5% and face value of $1,000. One year later, the yield to
Alex purchased a 10-year, zero-coupon bond today with a yield to maturity of 7.5% and face value of $1,000. One year later, the yield to maturity decreased to 6%. What was Alex's rate of return for the 1-year period that he held the bond?
Group of answer choices
D. 12.2%
A. 22.0%
E. 18.0%
C. 7.5%
B. 11.1%
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