Use the Following Information to Answer the Question(s)below

question 33

Multiple Choice

Use the following information to answer the question(s) below.
Suppose you purchase a 20-year treasury bond with a 6% annual coupon ten years ago at par.Today the bond's yield to maturity has risen to 8% (EAR) .
-If you sell this bond now,the internal rate of return you will earn on your investment will be closest to:

• A)5.0%.
• B)4.9%.
• C)6.0%.
• D)8.0%.

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