Question
You are considering the purchase of a zero Coupon Bond with a Face Value of $100,000, which matures in four years. In the markets this
You are considering the purchase of a zero Coupon Bond with a Face Value of $100,000, which matures in four years. In the markets this bond is selling for $79,659.31. If you purchase the bond at this price what is the Yield-to-Maturity (YTM) on the investment? (The answer is a percent, round your answer to two decimal place, e.g. 4.75)
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
