Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help solving this. A one-year zero coupon bond costs $ 99.43 today. Exactly one year from today, it will pay $ 100 .

I need help solving this.

A one-year zero coupon bond costs$99.43today. Exactly one year from today, it will pay$100.

What is the annual yield-to-maturity of the bond? (I.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of$100in one year?)

*Make sure to input all percentage answers as numeric values without symbols, and use four decimal places of precision. For example, if the answer is 6%, then enter 0.0600.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Business The Challenges Of Globalization

Authors: John J. Wild, Kenneth L. Wild

9th Edition

0134729226, 978-0134729220

More Books

Students also viewed these Finance questions