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Please show work, I've already posted this question, and someone answered it with only the answer and no work... I already have the answer... I
Please show work, I've already posted this question, and someone answered it with only the answer and no work... I already have the answer... I need to know how to do it, thanks
Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.94625 (1-year), 0.88966 (2-year), 0.83300 (3-year). Compute the 3-year effective annual zero-coupon bond yield.
Answers:
a. 6.28% Correct
b. 20.05%
c. 6.80%
d. 13.60%
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