You have just purchased a 7-year zero-coupon bond with a yield to maturity of 11%...
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Accounting
You have just purchased a 7-year zero-coupon bond with a yield to maturity of 11% and a par value of $1,000. What would your rate of return at the end of the year be if you sell the bond? Assume the yield to maturity on the bond is 9% at the time you sell.
| A. | 10.0%. | |
| B. | 23.8% | |
| C. | 13.8% | |
| D. | 1.4% |
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