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A zero-coupon, $1,000-par-value bond is currently selling for $312 and matures in exactly 10 years. a) What is the implied market-determined semiannual discount rate (i.e.,
A zero-coupon, $1,000-par-value bond is currently selling for $312 and matures in exactly 10 years.
a) What is the implied market-determined semiannual discount rate (i.e., semiannual yield to maturity) on this bond? (Remember, the bond pricing convention in the United States is to use semiannual compounding even with a zero-coupon bond.)
b) Using your answer to Part (a), what is the bonds (i) (nominal annual) yield to maturity? (ii) (effective annual) yield to maturity?
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The Technology Procurement Handbook A Practical Guide To Digital Buying
Authors: Sergii Dovgalenko
1st Edition
1789662125, 978-1789662122
