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A one-year zero coupon bond costs $ 99.43 today. Exactly one year from today, it will pay $ 100 . What is the annual yield-to-maturity

A one-year zero coupon bond costs$99.43today. Exactly one year from today, it will pay$100.

What is the annual yield-to-maturity of the bond? (I.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of$100in one year?)

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Question

A one-year zero coupon bond costs $ 99.43 today. Exactly one year from today, it will pay $ 100 . What is the annual yield-to-maturity

A one-year zero coupon bond costs$99.43today. Exactly one year from today, it will pay$100. What is the annual yield-to-maturity of the bond? (I.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of$100in one year?)

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Get Instant Access with AI-Powered Solutions

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Recommended Textbook for

An Introduction to Analysis

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A one-year zero coupon bond costs$99.43today. Exactly one year from today, it will pay$100.

What is the annual yield-to-maturity of the bond? (I.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of$100in one year?)