Question: Suppose you purchase a 1 5 year, zero - coupon bond with a yield to maturity of 5 % . You hold the bond for

Suppose you purchase a 15 year, zero-coupon bond with a yield to maturity of 5%. You hold the bond for 6 years before selling it.
a. If the bond's yeid to mahurity is 5% when you sell it, what is the internal rate of return of your investment?
b. If the bond's yeld to maturity is 6% when you sell it, what is the internal rate of return of your investment?
c. If the bond's yield to maturity is 4% when you sel if, what is the internal rate of return of your investment?
d. Even if a bond has no chance of defaut, is your investment nak free if you plan to sell it before it matures? Explain.
Nole: Assume annual compounding.
a. It the bonds yeld to maturity is 5% when you sell, what is the internal rate of return of your invertment?
The IRR of your investment if the bond's yield to maturty is 5% when you sell it is 4.(Round to twe decimal places)
Suppose you purchase a 1 5 year, zero - coupon

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