If a One-Year Zero-Coupon Bond Has a Face Value of $100

question 63

Multiple Choice

If a one-year zero-coupon bond has a face value of $100, is purchased for $94, and is held to maturity:

• A)The holding period return will exceed the yield to maturity
• B)The yield to maturity will exceed the holding period return
• C)The yield to maturity will be 6.38%
• D)The holding period return will be 6.38%

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