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Suppose you purchase a 30-year, SEK 10,000 par value. Zero-coupon bond with a yield to maturity (YTM) of 4.2% You hold the bond for 9

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Suppose you purchase a 30-year, SEK 10,000 par value. Zero-coupon bond with a yield to maturity (YTM) of 4.2% You hold the bond for 9 years before selling it. What is the price of the bond when you buy it? Answer: The price of the bond is SEK 2911.(round to too SEK) If the bonds yield to maturity drops by 1% when you sell it, what is the internal rate of return of your investment? Answer: If YTM drops by one percent when you sell the bond. IRR is _____ %. (round to one decimal) If the bond's yield to maturity drops by 2% when you sell it, what a the internal rate of return of your investment? Answer: If YTM drops by two percent when you sell the bond. IRR is _____ %. (round to one decimal) If the bonds yield to maturity increases by 1% when you sell it, what is the internal rate of return of your investment? Answer: If YTM Increases by one percent when you sell the bond, IRR is _____ %. (round to one decimal)

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