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A Ten-Year,zero-Coupon Bond with a Yield to Maturity of 6

Question 116

Multiple Choice

A ten-year,zero-coupon bond with a yield to maturity of 6% has a face value of $1000.An investor purchases the bond when it is initially traded,and then sells it four years later.What is the internal rate of return (IRR) of this investment,assuming the yield to maturity does not change?


A) 0.26%
B) 3.07%
C) 6.00%
D) 7.65%
E) 8.14%

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