Question: ABC Ltd has issued a 5 year zero coupon rate bond with maturity value of Sh.100,000. The bond is issued at a discount of

ABC Ltd has issued a 5 year zero coupon rate bond with

ABC Ltd has issued a 5 year zero coupon rate bond with maturity value of Sh.100,000. The bond is issued at a discount of 32%.Determine the rate of return of the bond. (4 marks)

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