You are considering investing in a zero-coupon bond that will pay you its face value of $1000 in twelve years. If the bond is currently selling for $496.97, then the internal rate of return (IRR) for investing in this bond is closest to ________

A) 5.0%
B) 7.1%
C) 6.0%
D) 8.2%


Answer: C

Business

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