Zero-Coupon Bonds Were Issued in 2005

question 15

Multiple Choice

Zero-coupon bonds were issued in 2005.If their implied yield to maturity is 5%,and the bonds will mature in 20 years,at what discount from the face value will they sell?

• A)10%
• B)25.42%
• C)37.68%
• D)cannot be determined, need more information

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