Question: Suppose you purchase a 3 0 - year, zero - coupon bond with a yield to maturity of 5 . 6 % . You hold
Suppose you purchase a year, zerocoupon bond with a yield to maturity of You hold the bond for five years before selling it A If the bond's yield to maturity is When you sell it what is the annualized rate of return of your investment? B If the bond's yield to maturity is when you sell it what is the annualized rate of return of your invesment? C If the bond's yield to maturity is when you sell it what is the annualized rate of return of your invesment? D Even if a bond has no chance of default, is your investment risk free if you plan to sell it before it matures?
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