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The yield to maturity of a 10-year zero-coupon bond is 4%. a.Suppose that you buy the bond today and hold it for 10 years. What

The yield to maturity of a 10-year zero-coupon bond is 4%.

a.Suppose that you buy the bond today and hold it for 10 years. What is your horizon yield?

b.Given only the information provided, can you compute the return on the bond if you hold the bond only for 5 years? If you answered yes, compute the return. If you answered no, explain why.

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