ou just bought a zero-coupon bond for $155. The bond matures in 9 years and the YTM is 5%. What will be your rate of return per year if you sell the bond 2 years later? Assume that the YTM has not changed. Please enter your answer as % and round to 2 decimal places. (e.g. RET=0.02673 should be entered as 2.67%).

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
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You just bought a zero-coupon bond for $155. The bond matures in 9 years and the YTM is 5%.
What will be your rate of return per year if you sell the bond 2 years later? Assume that the YTM
has not changed. Please enter your answer as % and round to 2 decimal places. (e.g. RET=0.02673
should be entered as 2.67%).
Transcribed Image Text:You just bought a zero-coupon bond for $155. The bond matures in 9 years and the YTM is 5%. What will be your rate of return per year if you sell the bond 2 years later? Assume that the YTM has not changed. Please enter your answer as % and round to 2 decimal places. (e.g. RET=0.02673 should be entered as 2.67%).
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