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PLEASE DO PART 2. You bought a 20-year, zero coupon bond with a face value of $1,000 and a yield to maturity of 3.4% (Expressed
PLEASE DO PART 2.
You bought a 20-year, zero coupon bond with a face value of $1,000 and a yield to maturity of 3.4\% (Expressed as an EAR, you don't need to deal with the simple rate issue.) Part 1 Attempt 1/1 What is the price of the bond today? Saved Part 2 Attempt 1/1 5 years after your initial purchase, you decide to sell the bond. (15 years are now remaining to maturity.) Interest rates have since risen to 6.2% on 15 -year bonds. What is your personal annual rate of return on holding the bond? (Reminder - this is a rate question, so be careful.)Step by Step Solution
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