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A zero-coupon bond is currently being traded at $74.62. The face value of the bond is $100 and the bond matures in exactly 6 years.
A zero-coupon bond is currently being traded at $74.62. The face value of the bond is $100 and the bond matures in exactly 6 years.
a. How much is the yield-to-maturity of the bond? (Write your answer as a percentage and round your answer up to two digits after the decimal point = (5%)
b. If the bonds YTM does not change, what will be the bond price in exactly 3 years from now?
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