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Intro You bought a 10-year zero-coupon bond with a face value of $1,000 and a yield to maturity of 3.2% (EAR). You keep the bond
Intro You bought a 10-year zero-coupon bond with a face value of $1,000 and a yield to maturity of 3.2% (EAR). You keep the bond for 5 years before selling Part 1 What was the price of the bond when you bought it?
Part 2 What is the rate of return (HPR) if the yield to maturity is still 3.2% when you sell the bond?
Part 3 What is the rate of return (HPR) if the yield to maturity is 4.4% when you sell the bond?
Part 4 What is the rate of return (HPR) if the yield to maturity is 1% when you sell the bond?
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