Consider a Zero-Coupon Bond with a $1000 Face Value and Ten

question 18

Multiple Choice

Consider a zero-coupon bond with a $1000 face value and ten years left until maturity. If the bond is currently trading for $459, then the yield to maturity on this bond is closest to:

• A) 9.7%
• B) 8.1%
• C) 10.4%
• D) 7.5%

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