Question
An investor purchases a 30-year, zero-coupon bond with a face value of $5,000 and a yield to maturity of 5.4%. He sells this bond ten
An investor purchases a 30-year, zero-coupon bond with a face value of $5,000 and a yield to maturity of 5.4%. He sells this bond ten years later. What is the rate of return on his investment, assuming yield to maturity does not change?
A. 2.7%
B. 5.4%
C. 4.32%
D. 3.24%
Please show work
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Sport Finance
Authors: Gil Fried, Steven Shapiro, Timothy D. Deschriver
2nd Edition
0736067701, 978-0736067706
