You purchased a zero coupon bond one year ago for $109 83 The market interest rate is now 9 percent If the bond had 25 years to maturity when you originally purchased it, what was your total return for the past year ...

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You purchased a zero coupon bond one year ago for $109.83. The market interest rate is now

Question:

You purchased a zero bond one year ago for $109.83. The market interest rate is now 9 percent. If the bond had 25 years to when you originally purchased it, what was your total return for the past year?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...