Question
You are evaluating three zero coupon bonds. All of the bonds have a $1,000 par value. Bond A matures in 12 years and has a
You are evaluating three zero coupon bonds. All of the bonds have a $1,000 par value. Bond A matures in 12 years and has a price today of $556.84. Bond B matures in 10 years and has a price today of $508.35. Bond C matures in 20 years and has a price today of $456.39.
Which of these bonds has a yield to maturity that is greater than 6%/year?
| none of the bonds | ||
| only Bond B | ||
| Bonds B and C | ||
| all of the bonds (A and B and C) | ||
| Bonds A and B | ||
| Bonds A and C | ||
| only Bond C | ||
| only Bond A |
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An Introduction To Socio-Finance
Authors: Jørgen Vitting Andersen, Andrzej Nowak
2013th Edition
3642419437, 978-3642419430
