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The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. Maturity (Years) Price 1 $925.16 2 $862.57

The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000.

Maturity (Years) Price

1 $925.16

2 $862.57

3 $788.66

4 $711.00

What is the yield to maturity on a 3-year zero-coupon bond?

Answers:

8.24%

9.00%

7.33%

6.37%

Please show step by step calculations. Thank you!

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