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Calculate IRR for investment in ten year, zero coupon bond

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A ten-year, zero-coupon bond with a yield to maturity of 6% has a face value of $1000. An investor purchases the bond when it is initially traded, and then sells it four years later. What is the internal rate of return (IRR) of this investment, assuming the yield to maturity does not change?

a. 7.65 %
b. 6.00%
c. 0.26%
d. 3.07%

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This solution helps calculation the IRR for investments.

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