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Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 6%. You hold the bond for five years before selling it. If
Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 6%. You hold the bond for five years before selling it. If the market interest rates are 4% when you sell it, What are the prices of this bond when you buy it and sell it? How much money have you gained or lost? What is your annual holding period return?
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