You just purchased a zero coupon corporate bond (i.e., a bond that has no interest payments)...
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You just purchased a zero coupon corporate bond (i.e., a bond that has no interest payments) for $6,550. The bond has a face value of $50,000 and is due in 20 years. If the bond is held to maturity, what rate of return will you make on the investment? 10.70% The rate of return cannot be calculated with the information given. 11.95% 6.93% You just purchased a zero coupon corporate bond (i.e., a bond that has no interest payments) for $6,550. The bond has a face value of $50,000 and is due in 20 years. If the bond is held to maturity, what rate of return will you make on the investment? 10.70% The rate of return cannot be calculated with the information given. 11.95% 6.93%
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