Question on Zero Coupon Bond
February 10, 2020
Question on Zero Coupon Bond for $3 Only (Instant Download)

A $1,000, 30 year zero coupon bond sells for $100. What is the effect on the rate of return if the selling price of the bond increases by 10 percent?
A increase of 34%
B decrease of 34%
C increase of 3.33%
D decrease of 10%
Can someone explain and show me the math to this problem?
Price of Answer: Just US$3 only (Instant Download)
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