Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Solve it correctly please. I will rate accordingly.
Transcribed Image Text:Suppose you purchase a $10,000 face value zero-coupon bond and hold it to
maturity, a term of 10 years. You paid $8,672 for the bond.
A) What was your expected yield to maturity?
B) What was your actual rate of return?
Enter answers as percents and round to 2 decimal places.
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