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A firm issues zero-coupon bonds with a face value of $100 and time to maturity of 5 years. The bonds are currently trading at $76.

A firm issues zero-coupon bonds with a face value of $100 and time to maturity of 5 years. The bonds are currently trading at $76. What is the yield to maturity on this bond? (Hint: use goal seek in Excel)

A 2.64%

B 3.64%

C 4.64%

D 5.64%

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