Question: One year ago, you purchased a 2 - year zero - coupon T - note with YTM of 2 % . When you are selling

One year ago, you purchased a 2-year zero-coupon T-note with YTM of 2%. When you are selling it today, you
notice that its YTM has increased to 3%. You 1-year holding period return is:
a. higher than 2%.
b. exactly 2%.
c. lower than 2%

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