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You Are Considering Investing in a Zero Coupon Bond That

Question 70

Multiple Choice

You are considering investing in a zero coupon bond that will pay you its face value of $1000 in ten years.If the bond is currently selling for $485.20,then the IRR for investing in this bond is closest to:


A) 12%.
B) 8.0%.
C) 7.5%.
D) 10%.

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