Question
A zero-coupon bond with face value $1,000 and maturity of five years sells for $755.22. a. What is its yield to maturity? (Round your answer
| A zero-coupon bond with face value $1,000 and maturity of five years sells for $755.22. |
| a. | What is its yield to maturity? (Round your answer to 2 decimal places.) |
| Yield to maturity | % |
| b. | What will the yield to maturity be if the price falls to $739? (Round your answer to 2 decimal places.) |
| Yield to maturity | % |
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Applied Quantitative Finance
Authors: W.; T. Kleinkow; G. Stahl Hardle
1st Edition
3540434607, 978-3540434603
