Compute what is the rate of return on investment

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Reference no: EM132645190

Problem 1: An investor purchases a bond that does not pay a coupon (zero-coupon) with a face value of $5,000. Assume the bond's 8.4% yield to maturity is expected to remain constant over the duration of the bond's life. What is the rate of return on his investment, if he sells this bond ten years later?

Reference no: EM132645190

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