Question: Use the table for the question(s) below. Consider the following zero-coupon yields on default free securities: Maturity (years) Zero-Coupon YTM 1 5.80% 2 5.50% 3
Use the table for the question(s) below. Consider the following zero-coupon yields on default free securities: Maturity (years) Zero-Coupon YTM 1 5.80% 2 5.50% 3 5.20% 4 5.00% 5 4.80% The price of a five-year, zero-coupon, default-free security with a face value of $1000 is closest to: $754 $791 $772 $776
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