QUESTION

90. You purchased a zero-coupon bond one year ago for $291.22. The market interest rate is now 8.75 percent. If the bond

Category: Business
Subject: Finance
Due Date: 02/01/2016
Question Asked: 2016-02-01 11:35:07

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90. You purchased a zero-coupon bond one year ago for $291.22. The market interest rate is now 8.75 percent. If the bond had 16 years to maturity when you originally purchased it, what was your total return for the past year if the face value of the bond is $1,000? 
A. -4.97 percent
B. -2.18 percent
C. 1.34 percent
D. 2.65 percent
E. 2.90 percent


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90. You purchased a zero-coupon bond one year ago for $291.22. The market interest rate is now 8.75 percent. If the bond

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Posted on 2016-02-01 11:35:07

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...cent. If the bond had 16 years to maturity when you originally purchase...

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