The Following Is a List of Prices for Zero-Coupon Bonds $\begin{array}{cc}\text { Maturity }\\\text { (Years) } & \text { Price } \\1 & \$ 943.40 \\2 & 881.68 \\3 & 808.88 \\4 & 742.09\end{array}$

question 10

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. $\begin{array}{cc}\text { Maturity }\\\text { (Years) } & \text { Price } \\1 & \$ 943.40 \\2 & 881.68 \\3 & 808.88 \\4 & 742.09\end{array}$ What is the yield to maturity on a 3-year zero-coupon bond?

• A) 6.37%
• B) 9.00%
• C) 7.33%
• D) 10.00%
• E) None of the options are correct.

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