Suppose you purchase a 20 year treasury bond with a? 6% annual coupon ten years ago...

Suppose you purchase a 20 year treasury bond with a? 6% annual coupon ten years ago at par. Today the? bond's yield to maturity has risen to? 8% (EAR). If you sell this bond? now, the internal rate of return you will earn on your investment will be closest? to:

A.) 5.0

B.) 6.0

C.) 4.9

D.) 8.0

Solutions

Expert Solution

jeff jeffy answered 2 years ago

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