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You just bought a zero-coupon bond that expires in 5 years. It has a face value of $100. If you decide to sell the zero-coupon

You just bought a zero-coupon bond that expires in 5 years. It has a face value of $100. If you decide to sell the zero-coupon bond in two years, what is the total return over the two years on your investment? The yield curve is flat at 5% at all times.

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9.35%

12.65%

10.25%

8.42%

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