Compute the annualized horizon return for the investment
Question:
Two years ago, you acquired a 10-year zero coupon, $1000 par value bond at a 12 percent YTM. Recently you sold this bond at an 8 percent YTM. Using semiannual compounding, compute the annualized horizon return for this investment.
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Recently you sold this bond at an 8 percent YTM. Using semiannual compounding, compute the annualized horizon return for this investment.
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