What Would the Yield to Maturity Be on a Four-Year

question 24

Multiple Choice

What would the yield to maturity be on a four-year zero-coupon bond purchased today? $\begin{array}{lr}&\text { 1-Year } \\&\text { Forward }\\\text { Year } & \text { Rate } \\1 & 5 \% \\2 & 5.5 \% \\3 & 6.0 \% \\4 & 6.5 \% \\5 & 7.0 \%\end{array}$

• A) 5.75%
• B) 6.30%
• C) 5.65%
• D) 5.25%

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