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You Purchased a Zero Coupon Bond One Year Ago for $291.22.The

Question 89

Multiple Choice

You purchased a zero coupon bond one year ago for $291.22.The market interest rate is now 8.75 percent.If the bond had 16 years to maturity when you originally purchased it,what was your total return for the past year if the face value of the bond is $1,000?


A) -4.97 percent
B) -2.18 percent
C) 1.34 percent
D) 2.65 percent
E) 2.90 percent

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