DFI 521: SECURITIES VALUATION AND INVESTMENT MANAGEMENT CAT 2 AUGUST 6, 2015 ATTEMPT ALL QUESTIONSamp;SHOW WORKINGS TIME: 1HOUR, 30 MINUTES Question...

If you have just purchased a 4-year zero coupon bond, what would be the expected rate of return on your investment in the first year if the implied forward rates stay the same?  (Par value of the bond = $1,000)

What is the yield to maturity of a 3-year zero coupon bond?

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