Multiple Choice
Suppose Alex purchases a 10-year,zero-coupon bond with a yield to maturity of 7.5% and face value of $10,000.If he sold it 3 years later,what would be the rate of return of his investment,given that the yield to maturity is now 6%?
A) 7.72%
B) 6%
C) 1.5%
D) 11.08%
E) 13.5%
Correct Answer:
Verified
Correct Answer:
Verified
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