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4. The yield to maturity of a 5-year zero coupon bond, with a par value of $1,000 and a market price of $866.81, is

4. The yield to maturity of a 5-year zero coupon bond, with a par value of $1,000 and a market price of $866.81, is

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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4. The yield to maturity of a 5-year zero coupon bond, with a par value of $1,000 and a market price of $866.81, is 5. A) 9% 6. B) 0% 7. C) 1% 8. D) 2% 5. The modified duration of a par value bond with a coupon rate of 3.5% and a remaining time to maturity of 3 years is 6. A) 67 7. B) 72 8. C) 75 9. D) 80
Transcribed Image Text:4. The yield to maturity of a 5-year zero coupon bond, with a par value of $1,000 and a market price of $866.81, is 5. A) 9% 6. B) 0% 7. C) 1% 8. D) 2% 5. The modified duration of a par value bond with a coupon rate of 3.5% and a remaining time to maturity of 3 years is 6. A) 67 7. B) 72 8. C) 75 9. D) 80
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