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),

A 10-year zero coupon bond will pay $1,000 at maturity and

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. 8% B. None of the answers is correct C. Less than 8% D. More than 8% E. 0%

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