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Posted on Jul 11, 2024

You purchase a twenty year zero coupon bond with a yield of 5%. One year later you sell the bond at a yield of 4%.

You purchase a twenty year zero coupon bond with a yield of 5%. One year later you sell the bond at a yield of 4%. What is your rate-of-return?

4.00%

5.00%

21.09%

25.94%

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