Consider a five ? year, default ? free bond with an annual coupon rate of 5% and a face value of $1000. The YTM on this bond is closest to:

A. 4.20% B. 4.40% C. 4.35% D. 3.85%

Maturity (years)1 2 345 Zero-Coupon YTM 3.25% 3.50% 3.90% 4.25% 4.40% Consider a five-year, default-free bond with an annual coupon rate of 5% and a face value of $1000. The YTM on this bond is closest to: OA. 4.20% ??. 4.40% ??. 4.35% OD. 3.85%