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  3. you have purchased a 3 year zero coupon bond with

You have purchased a 3 year zero coupon bond with face value of $1000 and...

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Accounting

You have purchased a 3 year zero coupon bond with face value of $1000 and a price of $850
a) what is YTM of this bond?
b) suppose you hold this bond to maturity, what is the annual rate of return (annualized holding period return)?

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