Solved

Use the Following Information to Answer the Question(s)below

Question 33

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 sell this bond now,the internal rate of return you will earn on your investment will be closest to:


A) 5.0%.
B) 4.9%.
C) 6.0%.
D) 8.0%.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions