Pop$-$Up Question #$3$

$1$ of $1$

$1$ year ago, you purchased a zero$-$coupon bond with $10$ years until maturity. You purchased the bond at a price that implied a YTM of $5\%.$

You just sold the same bond at a price that implies a YTM of $3\%.$

Your realized return from owning this bond over the past year has been $($choose the most appropriate option below$)$

greater than $5\%$

less than $5\%$

equal to $5\%$

Finish