An Investor Purchases a 30-Year,zero-Coupon Bond with a Face Value

question 95

Multiple Choice

An investor purchases a 30-year,zero-coupon bond with a face value of $1000 and a yield to maturity of 6.5%.He sells this bond ten years later.What is the rate of return on his investment,assuming yield to maturity does not change?

• A)6.04%
• B)6.24%
• C)6.50%
• D)6.62%

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Linear Optimization

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A mathematical or logical expression indicating that two quantities or expressions are the same in value or identity.

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A term that refers to the unequal distribution of resources, wealth, opportunities, and rights among members of a society or between societies.

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A division within a company responsible for conceptualizing and developing new products or systems.