Question: Suppose you purchase a 3 0 - year, zero - coupon bond with a yield to maturity of 1 0 % . You hold the

Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 10%. You hold the bond for five years before selling it.
a. If the bond's yield to maturity is 10% when you sell it, what is the annualized rate of return of your investment?
b. If the bond's yield to maturity is 2,000% when you sell it, what is the annualized rate of return of your investment?

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