Three month ago an investor pruchased a $1000 zero coupon bond with a maturity of exactly one year. At the time of the purchase it was priced to yield 7 percent(with annual compounding). The bond is currently priced to yield 6 percent. What is the three month return (annualized) on this investment if it is sold today?

a/10.06%

b/2.42%

c/5086%

d/6054%

先谢过各位大虾了。

because of zero coupon bond, so yield 7 percent mean that it must be cost u 990.65 [(1000+60)/1.07] to buy this bond

three month later u may receive 990.65*0.07/4 for u interest, but, u will not receive this for it yield 6 percent ,when u sell your bond u can receive 1014.35 [(1000+60)/(1+0.06*9/12)] which more than u can receive from the situation of 7 percent yield to mature

so return is 2.4 [(1014.35-990.65)/990.65*100%] percent for three month