a. For the Zero Coupon Bond 2 in Problem #1, what will be your annual compound yield for your 5 year holding period?
b. For the Coupon Bond 1 in Problem #, 1 what will be your annual compound yield if you hold the bond for 5 years (i.e. receive 5 years of coupon payments that are reinvested at a 3% annual rate), and received your maturity payment at the end of year 5? FVIFA = {(1 + r)^n - 1 / r}
c. Explain why you received your desired annual compound return for the 5-year holding period for Bond 2, but didn't receive your desired Annual Compound Return for Bond 1 for your 5 year holding period.

Question

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The Answer of a. For the Zero Coupon Bond 2 in Problem #1, what will be your annual compound yield for your 5 year holding period?
b. For the Coupon Bond 1 in Problem #, 1 what will be your annual compound yield if you hold the bond for 5 years (i.e. receive 5 years of coupon payments that are reinvested at a 3% annual rate), and received your maturity payment at the end of year 5? FVIFA = {(1 + r)^n - 1 / r}
c. Explain why you received your desired annual compound return for the 5-year holding period for Bond 2, but didn't receive your desired Annual Compound Return for Bond 1 for your 5 year holding period.

A for the Zero Coupon Bond 2 in Problem #1