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A ten-year,zero-coupon bond with a yield to maturity of 6% has a face value of $1000.An investor purchases the bond when it is initially traded,and then sells it four years later.What is the rate of return of this investment,assuming the yield to maturity does not change?
Production Possibilities Frontier
A curve depicting all maximum output possibilities for two goods, given a set of inputs.
Utility
In economics, it represents a measure of satisfaction or happiness that consumers derive from the consumption of goods and services.
Efficient
The optimal allocation of resources to maximize the production of goods and services without wasting those resources.
Production Possibilities Frontier
A curve that shows the maximum efficient production level of one good for a given level of production for another, assuming fixed resources and technology.
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