Question
A 3-year zero coupon bond is priced at $900 with a par value of $1000. Calculate its YTM Show amortization schedule for this bond. Show
A 3-year zero coupon bond is priced at $900 with a par value of $1000.
Calculate its YTM
Show amortization schedule for this bond. Show full calculations in table below.
Amortization Schedule for the Zero Coupon Bond
| Year | Investment Value | Interest Earned |
| 0 |
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| 1 |
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| 2 |
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| 3 |
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Financial Management
Authors: Geoffrey Knott
4th Edition
1403903824, 9781403903822
