Problemyou purchased a zero coupon bond one year ago for, Ask an Expert

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Problem:

You purchased a zero coupon bond one year ago for $109.56. The market interest rate is now 11 percent. If the bond had 21 years to maturity when you originally purchased it, what was your total return for the past year? Assume semiannual compounding.

Explain comprehensively and show all workings.

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Category:- Basic Finance
Reference No.:- M91147096

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