Question
The current market price of zero-coupon bonds that have a face value of $1000 and 5 years to maturity is $840. What is the yield
The current market price of zero-coupon bonds that have a face value of $1000 and 5 years to maturity is $840. What is the yield to maturity of these bonds (annually compounded)? Note: Your answer must be given in percentage terms and accurate to within 0.01%.
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Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
