Question
A 20-year, zero-coupon bond was recently being quoted at 25.629% of par. Find the current yield and the promised yield of this issue, given that
A 20-year, zero-coupon bond was recently being quoted at 25.629% of par. Find the current yield and the promised yield of this issue, given that the bond has a par value of $1,000. Then, using semiannual compounding, determine how much an investor would have to pay for this bond if it were priced to yield 11.040%.
The current yield on this bond is %.
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Personal Finance Building Your Future
Authors: Robert Walker, Kristy Walker
2nd Edition
0077861728, 9780077861728
