Question:You have just purchased a 11-year zero-coupon bond with a yield
to maturity of 9% and...
Question
You have just purchased a 11-year zero-coupon bond with a yield
to maturity of 9% and...
You have just purchased a 11-year zero-coupon bond with a yield
to maturity of 9% and a par value of $1,000. What would your rate
of return at the end of the year be if you sell the bond? Assume
the yield to maturity on the bond is 10% at the time you sell.