The Formula for the Yield to Maturity, I, on a Discount

question 64

Multiple Choice

The formula for the yield to maturity, i, on a discount bond is

• A)i = (Face value - Discount price)/Discount price.
• B)i = (Discount price - Face value)/Discount price.
• C)i = (Face value - Discount price)/Face value.
• D)i = (Discount price - Face value)/Face value.

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