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You wish to know the internal rate of return (IRR) of investing in a bond. This bond is a ten-year, zero-coupon bond with a YTM

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You wish to know the internal rate of return (IRR) of investing in a bond. This bond is a ten-year, zero-coupon bond with a YTM of 7% (yearly) and a face value of $1000. You plan to buy this bond when it is initially traded and sell it four years later. Assuming the YTM does not change in this four year period, what is the IRR of this investment? 7.25% 3.50% 8.14% 7.00% 0.26%

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