Question: Buy a zero coupon bond with 2 years left until maturty and a coupon of 9%. Bond of similar risk has a rate of 10%.

Buy a zero coupon bond with 2 years left until maturty and a coupon of 9%. Bond of similar risk has a rate of 10%. Whats holding period return?

10.04%

20.08%

18.32%

20.43%

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