A zero coupon bond paying $100 at maturity 10 years from now has a current price of
Question:
A zero coupon bond paying $100 at maturity 10 years from now has a current price of $50. Its yield to maturity is closest to which of the following?
a. 5 percent
b. 6 percent
c. 7 percent
d. 8 percent.
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For a zerocoupon bond the relationship between its price and yield to maturity YTM is relatively str...View the full answer
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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