Question: Q8. ABC Ltd plans to issue 3-year zero coupon bonds with a face value of $1000. It has learned that these bonds will sell today

Q8. ABC Ltd plans to issue 3-year zero coupon bonds with a face value of $1000. It has learned that these bonds will sell today at a price of $135. Assuming annual compounding for payments, what is the yield to maturity on these bonds? a. 90.4% b. 70.2% c. 86.5% d. *95.0% Hint: Use PB = Fmn (1+in and find (i)

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