suppose you purchae a 20 year treasury bond with a 5% annual coupon, initially trading at par. 8 years avger being issued the bonds yield to maturity has risen to 7% (Ear).   if you hold the bond to maturity, the internal rate of return you will earn on your investment is?   7% 5% 6.43% 4.21% 3.23%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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suppose you purchae a 20 year treasury bond with a 5% annual coupon, initially trading at par. 8 years avger being issued the bonds yield to maturity has risen to 7% (Ear).

 

if you hold the bond to maturity, the internal rate of return you will earn on your investment is?

 

7%

5%

6.43%

4.21%

3.23%

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