Multiple Choice
The one-year discount factor today is 0.95. You buy a one-year zero-coupon bond today and hold it until maturity. Suppose that at maturity, the one-year discount factor is 0.92. The return you realize, expressed in simple terms, is:
A) 3.43%
B) 5.26%
C) 8.69%
D) 9.50%
Correct Answer:
Verified
Correct Answer:
Verified
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