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← Calculate rates of return on financial instruments

mcq

What is the yield on a zero-coupon bond purchased at 80 and redeemed at 100 in 3.5 years?

What is the yield on a zero-coupon bond purchased at 80 and redeemed at 100 in 3.5 years?

(Par value / Price)^(1/n) - 1

(Annual coupon / Price) * 100

(Price change + Dividends) / Initial price * 100

(Final price - Initial price) / Initial price * 100