A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 18 years. The bonds are currently trading at $589.3. What is the yield on this bond? Answer in percent, rounded to two decimal places. (e.g., 5.67%=5.67)
A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 18 years. The bonds are currently trading at $589.3. What is the yield on this bond? Answer in percent, rounded to two decimal places. (e.g., 5.67%=5.67)
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 10PROB
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