If the bonds yield to maturity is 6 when you sell it what


Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 6%. You hold the bond for five years before selling it.

a. If the bond’s yield to maturity is 6% when you sell it, what is the internal rate of return of your investment?

b. If the bond’s yield to maturity is 7% when you sell it, what is the internal rate of return of your investment?

c. If the bond’s yield to maturity is 5% when you sell it, what is the internal rate of return of your investment?

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Financial Management: If the bonds yield to maturity is 6 when you sell it what
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