A 1000 face value zero coupon bond is purchased for 700
A $1,000 face value zero coupon bond is purchased for $700 five years prior to maturity. What is the effective annual return over the bond’s life?
(A) 7.4%
(B) 8.6%
(C) 107.4%
(D) 495.0%
(E) 595.0%
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1 explain the relationship between correlation and causation comparing and contrasting these two aspects of predictive
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