Suppose you purchase a 30-year sek 10000 par value, Ask an Expert

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Suppose you purchase a 30-year, SEK 10,000 par value, zero-coupon bond with a yield to maturity (YTM) of 4.8%. You hold the bond for 6 years before selling it.

(a) What is the price of the bond when you buy it?

(b) If the bond's yield to maturity drops by 1% when you sell it, what is the internal rate of return of your investment?

(d) If the bond's yield to maturity increases by 1% when you sell it, what is the internal rate of return of your investment?

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Financial Management, Finance

Category:- Financial Management
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