What would the rate of return of your investment be

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(a) Suppose you purchase a 20-year, zero-coupon bond with a yield to maturity of 10%. For a face value of $800, the bond will initially trade for

(b) If the bond’s yield to maturity change to be 12%, what will its price be five years later?

Cranston Industries just issued $1,000 par 30-year bonds. The bonds sold for $1,107.20 and pay interest semi-annually. Investors require a rate of 7.75% on the bonds. What is the bonds' coupon rate?

Reference no: EM131875387

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