What is the internal rate of return of your? investment

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Question - Suppose you purchase a? 30-year, zero-coupon bond with a yield to maturity of 9%. You hold the bond for five years before selling it.

a. If the? bond's yield to maturity is 9% when you sell? it, what is the internal rate of return of your? investment?

b. If the? bond's yield to maturity is 10% when you sell? it, what is the internal rate of return of your? investment?

c. If the? bond's yield to maturity is 8% when you sell? it, what is the internal rate of return of your? investment?

d. Even if a bond has no chance of? default, is your investment risk free if you plan to sell it before it? matures? Explain.

Reference no: EM132964093

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