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Consider the following zero-coupon yields on default-free securities: Maturity (years) 1 2 3 4 5 Zero-Coupon YTM 5.80% 5.50% 5.20% 5.00% 4.80% The price of
Consider the following zero-coupon yields on default-free securities:
Maturity (years) | 1 | 2 | 3 | 4 | 5 |
Zero-Coupon YTM | 5.80% | 5.50% | 5.20% | 5.00% | 4.80% |
The price of a five-year, zero-coupon, default-free security with a face value of $1000 is closest to:
$776. | ||
$754. | ||
$772. | ||
$791. |
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