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If a $1,000 zero coupon bond with a 15- year maturity has a market price of $481.80, what is its rate of return?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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If a $1,000 zero coupon bond with a 15- year
maturity has a market price of $481.80, what is
its rate of return?

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