A zero coupon bond with face value $1,000 and maturity of five years sells for $746 22 a What is its yield to maturity (Round your answer to 2 decimal places ) Yield to maturity b What will the yield to maturity be if the price falls to $730 (Round your answer to 2 decimal places ) Yield to maturit...

Computation of Yield to maturity on Zer ...

A zero-coupon bond with face value $1,000 and maturity of five years sells for $746.22. a. What

Question:

A zero-coupon bond with $1,000 and of five years sells for $746.22.
a. What is its yield to (Round your answer to 2 decimal places.)
Yield to %
b. What will the yield to be if the price falls to $730? (Round your answer to 2 decimal places.) Yield to Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...