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Suppose you purchase a 6-year zero coupon bond with face value $1,000. You hold the bond for three years and sell it. If the bond's

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Suppose you purchase a 6-year zero coupon bond with face value $1,000. You hold the bond for three years and sell it. If the bond's yield to maturity was 4% both when you purchased and sold the bond, what is the internal rate of return of your investment? [10 marks]

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