If Next Year's Bond Prices for 3-Year Zero Coupon Bonds

question 15

Multiple Choice

If next year's bond prices for 3-year zero coupon bonds may be either 0.8923 or 0.8644,what is the yield volatility?

• A) 12.7%
• B) 13.7%
• C) 14.7%
• D) 15.7%

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