Suppose a zero coupon bond with a face value of $1,000 and maturing in 3 years is trading at $950. What is the Yield to Maturity of this bond?

Select one:

a. $50.00

b. 1.72%

c. 1.67%

d. None of the choices is an accurate choice

Look again at problem 4. What is the Duration of this bond? (Problem 4 stated: Suppose a zero coupon bond with a face value of $1,000 and maturing in 3 years is trading at $950. What is the Yield to Maturity of this bond?

Select one:

a. 2.8 years

b. 2.9 years

c. 3.0 years

d. 3.1 years