Question
Consider the following $1,000-par-value, 3-year, zero-coupon bond. It is selling at $711.78 . By convention, zero bonds are assumed to pay $0 semi-annually. The yield
Consider the following $1,000-par-value, 3-year, zero-coupon bond. It is selling at $711.78 . By convention, zero bonds are assumed to pay $0 semi-annually. The yield to maturity on the bond is
| a. 10.71%. | ||
| b. 11.00%. | ||
| c. None of the options are correct. | ||
| d. 11.66%. | ||
| e. 14.62%. |
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Foundations Of Financial Management
Authors: Stanley B Block, Geoffrey A Hirt
12th Edition
0073295817, 9780073295817
