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If you purchase a 5-year, zero-coupon bond for $800 (with face value of $1,000), a) What is the yield of the bond? b) How much
If you purchase a 5-year, zero-coupon bond for $800 (with face value of $1,000), a) What is the yield of the bond? b) How much could it be sold for 3 years later if the interest rates have remained stable? c) How much would it be sold for 3 years later if the interest rates of year 4 and year 5 change to 5%?
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