Consider a Zero-Coupon Bond with a $1000 Face Value and Ten

question 4

Multiple Choice

Consider a zero-coupon bond with a $1000 face value and ten years left until maturity.If the bond is currently trading for $459,then the yield to maturity on this bond is closest to:

• A)7.5%
• B)10.4%
• C)9.7%
• D)8.1%
• E)7.2%

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