Question: Zip Boys has outstanding zero coupon bonds maturing in 2016. a. How would you compute the yield-to-maturity on bonds like these? b. How do bondholders

Zip Boys has outstanding zero coupon bonds maturing in 2016.

a. How would you compute the yield-to-maturity on bonds like these?

b. How do bondholders get a return when they buy these bonds?

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a The yield to maturity of a bond is the discount rate that equates the present value of the repayment of principal and all expected interest payments ... View full answer

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