Multiple Choice
If a one-year zero-coupon bond has a face value of $100, is purchased for $94, and is held to maturity the:
A) holding period return will exceed the yield to maturity.
B) yield to maturity will exceed the holding period return.
C) yield to maturity will be 6.38%.
D) holding period return is 6.0%.
Correct Answer:
Verified
Correct Answer:
Verified
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