Question
one-year zero coupon bond costs $ 99.43 today. Exactly one year from today, it will pay $ 100 . What is the annual yield-to-maturity of
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?)
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
