Question: e Suppose you purchase a 30-year zero-coupon bond with a yield to maturity of 5.7%. You hold the bond for five years before selling it.
e Suppose you purchase a 30-year zero-coupon bond with a yield to maturity of 5.7%. You hold the bond for five years before selling it. a. If the bond's yield to maturity is 5.7% when you sell it, what is the rate of return of your investment? b. If the bond's yield to maturity is 6.7% when you sell it, what is the rate of return of your investment? c. If the bond's yield to maturity is 4.7% when you sell it , what is the rate of return of your investment? d. Even if a bond has no chance of default, is your investment risk free if you plan to sell it before it matures? Explain. a. If the bond's yield to maturity is 5.7% when you sell it, what is the rate of retum of your investment? The rate of return of your investment is [%. (Round to two decimal places.)
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