Question
Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 5.8 %. You hold the bond for five years before selling it.
Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 5.8 %. You hold the bond for five years before selling it.
a. If the bond's yield to maturity is 5.8 % when you sell it, what is the annualized rate of return of your investment?
b. If the bond's yield to maturity is 6.8 % when you sell it, what is the annualized rate of return of your investment?
c. If the bond's yield to maturity is 4.8 % when you sell it, what is the annualized rate of return of your investment?
d. Even if a bond has no chance of default, is your investment risk free if you plan to sell it before it matures? Explain.
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Fanatical Prospecting The Ultimate Guide To Opening Sales Conversations And Filling The Pipeline By Leveraging Social Selling Telephone Email Text And Cold Calling
Authors: Jeb Blount, Mike Weinberg
1st Edition
1119144752, 978-1119144755
