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An FI has purchased a two-year, $1,000 par value zero-coupon bond for $860. What is the yield on the bond at the time of purchase?
An FI has purchased a two-year, $1,000 par value zero-coupon bond for $860. What is the yield on the bond at the time of purchase?
a.
7.83%
b.
7.34%
c.
7.18%
d.
8.02%
e.
7.74%
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