Question: 1 . Bond - A is a 1 5 - year Zero Coupon Bond with a par value of 1 0 0 0 . Tom

1.Bond-A is a 15-year Zero Coupon Bond with a par value of 1000. Tom buys 1000 pieces of Bond-A when the market yield is 8.24%. He holds the bond for 10 years and sells the bond when the market yield on Bond A is 9.25%.(Note: compounding is on an annual basis)(a) Calculate the total dollar return from Toms investment in Bond-A (10 marks)(b) Calculate the annualized holding period yield or total return for the period he has held Bond-A (5 marks)

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