Question
A 3-year zero coupon bond is priced at $900 with a par value of $1000. A. Calculate its YTM B. Show amortization schedule for this
A 3-year zero coupon bond is priced at $900 with a par value of $1000.
A. Calculate its YTM
B. 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 |
| |
| 1 |
|
|
| 2 |
|
|
| 3 |
|
|
|
|
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Evolutionary Finance
Authors: Bartholomew Frederick Dowling
1st Edition
0230502199, 9780230502192
