Question
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value): Maturity (years) 1 2 3 4 5 Price
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value):
| Maturity (years) | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Price (per $100 face value) | 94.52 | 89.68 | 85.40 | 81.65 | 78.35 |
The yield to maturity for the five-year zero-coupon bond is closest to:
A. 5.0%
B. 5.8%
C. 5.4%
D. 5.6%
E. 6.0%
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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
