Question
Suppose a 5-year zero-coupon Treasury bond with face value $1000 has a 5% yield (annually compounded). (a) What price does this bond sell for? (b)
Suppose a 5-year zero-coupon Treasury bond with face value $1000 has a 5% yield
(annually compounded).
(a) What price does this bond sell for?
(b) Suppose another zero-coupon Treasury bond also has a 5% yield, but sells for
$325.57. What is the maturity of this bond?
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
