A one-year discount bond with a face value of $1,000 was purchased for $900. What is the

Question:

A one-year discount bond with a of $1,000 was purchased for $900. What is the yield to maturity? What is the yield on a discount basis?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...