Treasury zeros pay a fixed amount at maturity. For example, a Treasury zero could be purchased on

Question:

Treasury zeros pay a fixed amount at maturity. For example, a Treasury zero could be purchased on January 2, 2009, for $445.19 and might be worth $1,000 when it matures 25 years later. What is the annual rate of return on this zero?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: