Multiple Choice
Use the following information to answer the question(s) below.
Suppose you purchase a 20-year treasury bond with a 6% annual coupon ten years ago at par.Today the bond's yield to maturity has risen to 8% (EAR) .
-If you hold this bond to maturity,the internal rate of return you will earn on your investment will be closest to:
A) 5.0%.
B) 5.6%.
C) 6.0%.
D) 8.0%.
Correct Answer:

Verified
Correct Answer:
Verified
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