Question: If a $10,000 face value discount bond maturing in one year is selling for $8,333, then its yield to maturity is A) 10 percent. B)

If a $10,000 face value discount bond maturing in one year is selling for $8,333, then its yield to maturity is

A) 10 percent.

B) 20 percent.

C) 25 percent.

D) 40 percent.

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