Question: Question 25 A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 15 years. The bonds are currently trading

Question 25

A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 15 years. The bonds are currently trading at $480. What is the yield on this bond?

		a. 2.60%
		b. 3.13%
		c. 3.70%
		d. 4.32%
		e. 5.01%

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