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suppose you buy a 2 year zero coupon bond and a 30 year zero coupon bond today, when the YTM for both bonds is 10%.

suppose you buy a 2 year zero coupon bond and a 30 year zero coupon bond today, when the YTM for both bonds is 10%. 1 year from now, you sell the bonds at ytm shown. fill the rest of the table.

YTM 1 year from now	8%	12%
return on the 2 year zero coupon bond
return on the 30 year zero coupon bond
wgar does this problem illurate about investing long term bonds?

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