Question: A 10-year zero coupon bond will pay $1,000 at maturity and is priced at $463.19 to yield 8%. One year later, (9 years to maturity),

  1. A 10-year zero coupon bond will pay $1,000 at maturity and is priced at $463.19 to yield 8%. One year later, (9 years to maturity), the bond is priced at $500.25 to yield 8%. What is the holding period return from time 0 to time 1?

    A.

    None of the answers is correct
    B.

    Less than 8%
    C.

    0%
    D.

    8%
    E.

    More than 8%

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