The Prices of Three Zero-Coupon Bonds Are Provided in the Table

question 80

Multiple Choice

The prices of three zero-coupon bonds are provided in the table below.All three bonds have a face value of $1,000.The three bonds have three different terms to maturity.What is the yield on the bond with 2 years to maturity?

• A) 4.07%
• B) 4.16%
• C) 4.02%
• D) 3.59%
• E) 3.98%

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