Assume you buy a 12-year 1000 par value zero-coupon bond


Assume you buy a 12-year, $1,000 par value zero-coupon bond that provides a 10 percent yield. Almost immediately after you buy the bond, yields go down to 8 percent. What will be your gain on the investment?

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Financial Management: Assume you buy a 12-year 1000 par value zero-coupon bond
Reference No:- TGS01400643

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