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Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 9% You hold the bond for five years before selling it a.

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Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 9% You hold the bond for five years before selling it a. If the bond's yield to maturity is 9% when you sell it, what is the internal rate of return of your investment? b. If the bond's yield to maturity is 10% when you sell it , what is the internal rate of return of your investment? c. If the bond's yield to maturity is 8% when you sell it, what is the internal 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 Note: Assume annual compounding a. If the bond's yield to maturity is 9% when you sell it, what is the internal rate of return of your investment? The IRR of your investment if the band's yield to maturity is 9% when you sell it is 3% (Round to two decimal places.) b. If the bond's yield to maturity is 10% when you sell it, what is the internal rate of return of your investment? The IRR of your investment if the bond's yield to maturity is 10% when you sell it is % (Round to two decimal places) c. If the bond's yield to maturity is 8% when you sell it, what is the internal rate of return of your inbystment? The IRR of your investment if the bond's yield to maturity is 8% when you sell it is % (Round to two decimal places) 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 (Select the best choice below) Click to select your answer(s)

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