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You purchased a zero coupon bond one year ago for $112.10. The bond has a par value of $1,000 and the market interest rate is
You purchased a zero coupon bond one year ago for $112.10. The bond has a par value of $1,000 and the market interest rate is now 9 percent. If the bond had 24 years to maturity when you originally purchased it, what was your total return for the past year? Assume semiannual compounding. |
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