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Could you explain it? Thank you so much! Consider the following bond which has a face value of $110 with zero coupon payments for one

image text in transcribed Could you explain it? Thank you so much!

Consider the following bond which has a face value of $110 with zero coupon payments for one year. It it sold for $10 what is the rate of return for the bond? (Assume the risk free rate is 0) 10% 100% 1, 000% 10, 000%

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