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An Investor Purchases a 30-Year,zero-Coupon Bond with a Face Value

Question 61

Multiple Choice

An investor purchases a 30-year,zero-coupon bond with a face value of $1000 and a yield to maturity of 6.5%.He sells this bond ten years later.What is the internal rate of return (IRR) on his investment,assuming yield to maturity does not change?


A) 6.04%
B) 6.24%
C) 6.50%
D) 6.62%
E) 6.74%

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