A one year discount bond with a face value of $1,000 for $890. What is the yield

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A one year discount bond with a face value of $1,000 for $890. What is the yield on a discount basis? If it matures in three years.

What would be its YTM?

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: May 06, 2023 03:25 AM

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A one year discount bond with a face value of $1,000 for $890. What is the yield

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To calculate the yield on a discount basis we need to determine the discount rate that makes the pr... View the full answer

Introduction To Corporate Finance

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