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Let's assume the market interest rate remain the same and examine how passage of time affect bond price. Suppose you purchase a 3 0 -
Let's assume the market interest rate remain the same and
examine how passage of time affect bond price.
Suppose you purchase a year, ZCB with YTM of EAR
What price do you pay for the bond today? If you sell the bond
after years, what price will you receive? What would be IRR of
your investment be
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