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Canyon Buff Enterprise just issued a three-year, zero-coupon corporate bond at a price of $74. You have purchased this bond and intend to hold it
Canyon Buff Enterprise just issued a three-year, zero-coupon corporate bond at a price of $74. You have purchased this bond and intend to hold it until maturity.What is the expected return on your investment if there is no chance of default?
a) Expected return > Yield to Maturity
b) Expected return < Yield to Maturity
c) Expected return = Yield to Maturity
d) Cannot be determined
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