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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?

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D. 12.2%

A. 22.0%

E. 18.0%

C. 7.5%

B. 11.1%

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