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An investor purchased a 10 year zero-coupon bond with 10% yield-to-maturity. The interest rate for the bond increased by 1% right after he purchasedthe bond.

An investor purchased a 10 year zero-coupon bond with 10% yield-to-maturity. The interest rate for the bond increased by 1% right after he purchasedthe bond. What will be the investor's realized rate of return if he holds the bond to maturity? (explanation)

a) 11%

b) 10%

c) 9%

d) 8%

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