Question: Builtrite currently has a $1000 par, 7 year maturity, zero coupon bond outstanding that is selling for $711. What is the bonds yield to maturity?

Builtrite currently has a $1000 par, 7 year maturity, zero coupon bond outstanding that is selling for $711. What is the bonds yield to maturity?

a) 6%

b) 5%

c) 4%

d) 3%

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