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Jennifer wants to buy zero-coupon bonds as a means of saving for retirement. She finds that the current price of a zero-coupon bond with a

Jennifer wants to buy zero-coupon bonds as a means of saving for retirement. She finds that the current price of a zero-coupon bond with a face value of $1,000 and 20 years to maturity is $241.60.

(a) If she buys this bond and holds it to maturity, what annual yield to maturity will she earn before taxes?

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