Question: QUESTION 9 A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 7 years. The bonds are currently trading

QUESTION 9

  1. A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 7 years. The bonds are currently trading at $640. What is the yield on this bond?

    a. 5.7%

    b. 6.6%

    c. 7.7%

    d. 9.3%

    e. 11.8%

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