Question
A zero-coupon bond is currently trading at a quoted price of 66.88, it has 9-years left to maturity, and a face value of $1,000. Find
A zero-coupon bond is currently trading at a quoted price of 66.88, it has 9-years left to maturity, and a face value of $1,000. Find the yield to maturity of the bond if interest is compounded semiannually.
The answer given is 4.52 but I'm not sure how to get there.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
