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Zip Boys has outstanding zero coupon bonds maturing in Year 1. How would you compute the yield-to-maturity on bonds like these? The yield to maturity
Zip Boys has outstanding zero coupon bonds maturing in Year 1.
- How would you compute the yield-to-maturity on bonds like these? The yield to maturity would be the discount rate that equates -Select-(the call price of the bond, the discounted value of the bond's annual coupon payments, the maturity value of the bond ($1,000)) with the current price of the bond.
- How do bondholders get a return when they buy these bonds? Round your answer to the nearest dollar. Bondholders buy the bonds at a discount from their -Select- (call price, coupon payments, maturity value) and then hold them until maturity, at which time they are worth $ .
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