Suppose you purchase a $10,000 face value zero-coupon bond and hold it to maturity, a term of 10 years. You paid $8,072 for the bond. A) What was your expected yield to maturity? B) What was your actual rate of return?. Enter answers as percents and round to 2 decimal places.

Suppose you purchase a $10,000 face value zero-coupon bond and hold it to maturity, a term of 10 years. You paid $8,072 for the bond. A) What was your expected yield to maturity? B) What was your actual rate of return?. Enter answers as percents and round to 2 decimal places.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.2IP

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Suppose you purchase a $10,000 face value zero-coupon bond and hold it to
maturity, a term of 10 years. You paid $8,072 for the bond.
A) What was your expected yield to maturity?
B) What was your actual rate of return? %
Enter answers as percents and round to 2 decimal places.

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