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Suppose you purchase a 2 0 - year, $ 1 0 0 par value, zero - coupon bond with a yield to maturity of 5

Suppose you purchase a 20-year, $100 par value, zero-coupon bond with a yield to maturity of
5%. You hold the bond for 5 years before selling it.
a. If the bond's yield to maturity is 4% when you sell it, what is the internal rate of return of
your investment? (express your answers in percentage points, round to 2 decimals)%
(8.02-8.1)
b. If the bond's yield to maturity is 5% when you sell it, what is the internal rate of return of
your investment? (express your answers in percentage points, round to 2 decimals)%
(4.99-5.01)
c. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return of
your investment? (express your answers in percentage points, round to 2 decimals)%
(2.02-2.1)
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