Multiple Choice
A ten-year, zero-coupon bond with a yield to maturity of 4% has a face value of $1000. An investor purchases the bond when it is initially traded, and then sells it four years later. What is the rate of return of this investment, assuming the yield to maturity does not change?
A) 3.20%
B) 2.40%
C) 4.00%
D) 2.00%
Correct Answer:
Verified
Correct Answer:
Verified
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