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PLEASE QUOTE FORMULARS BEFORE INSERTING VALUES Suppose you purchase a 30-year, SEK 10,000 par value, zero-coupon bond with a yield to maturity (YTM) of 4.4%.

PLEASE QUOTE FORMULARS BEFORE INSERTING VALUES

Suppose you purchase a 30-year, SEK 10,000 par value, zero-coupon bond with a yield to maturity (YTM) of 4.4%. You hold the bond for 7 years before selling it. (a) What is the price of the bond when you buy it? (b) If the bonds yield to maturity drops by 1% when you sell it, what is the internal rate of return of your investment? (round to one decimal) (c) If the bonds yield to maturity drops by 2% when you sell it, what is the internal rate of return of your investment? (d) If the bonds yield to maturity increases by 1% when you sell it, what is the internal rate of return of your investment?

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