Question: Problem 10-5 (Algo) A zero-coupon bond with face value $1,000 and maturity of four years sells for $747.22. Required: a. What is its yield to

Problem 10-5 (Algo)

A zero-coupon bond with face value $1,000 and maturity of four years sells for $747.22.

Required:

a. What is its yield to maturity? (Round your answer to 2 decimal places.)

b. What will the yield to maturity be if the price falls to $731? (Round your answer to 2 decimal places.)

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