Question: A risk-free, zero-coupon bond with a $5,000 face value has 10 years to maturity. The bond currently trades at $4,450. What is the yield to

A risk-free, zero-coupon bond with a

$5,000

face value has

10

years to maturity. The bond currently trades at

$4,450.

What is the yield to maturity of this bond?

A.

89%

B.

55.5%

C.

1.172%

D.

0.586%

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