Question
Zevo Corp. bonds have a coupon rate of 7%, a yield to maturity of 10%, a face value of $1,000, and mature in 10 years.
Zevo Corp. bonds have a coupon rate of 7%, a yield to maturity of 10%, a face value of $1,000, and mature in 10 years. Which of the following statements is most correct?
.
Select one:
a. An investor who purchases the bond today will earn a return of 10% per year if he holds the bond until it matures
b. c. An investor who purchases the bond today will earn a return of 17% per year if he holds the bond until it matures.
c. b. An investor who purchases the bond today will earn a return of 7% if he sells the bond after one year
d. a. An investor who purchases the bond today will earn a return of 10% if he sells the bond after one year.
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