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The return on an investment in a bullet bond that is held to maturity will equal its yield-to-maturity if : The duration gap is zero.

  1. The return on an investment in a bullet bond that is held to maturity will equal its yield-to-maturity if :
    1. The duration gap is zero.
    2. The coupon payments are reinvested at the bonds yield-to-maturity.
    3. Interest rates remain unchanged.
    4. The bond has positive convexity.
    5. The bond is called.

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