Question
The prices of discount bonds (all with maturity value of $1,000) maturing in years 1, 2, 3, 4, 5 are given below. Price Time to
The prices of discount bonds (all with maturity value of $1,000) maturing in years 1, 2, 3, 4, 5 are given below.
| Price | Time to Maturity |
| 920 | 1 |
| 860 | 2 |
| 790 | 3 |
| 700 | 4 |
| 600 | 5 |
What is the yield to maturity on a risk-free 5% bond due in 5 years (also with maturity value of $1,000)?
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HBR Guide To Finance Basics For Managers
Authors: Harvard Business Review
1st Edition
1422187306, 978-1422187302
