= annual yield-to-maturity

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A one-year zero coupon bond costs $99.43 today.
Exactly one year from today, it will pay $100.
What is the annual yield-to-maturity of the bond?
(1.e., what is the discount rate one needs to use to
get the price of the bond given the future cash flow
of $100 in one year?)
1.0057
0.0057
2.0057
-0.0057
Transcribed Image Text:A one-year zero coupon bond costs $99.43 today. Exactly one year from today, it will pay $100. What is the annual yield-to-maturity of the bond? (1.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of $100 in one year?) 1.0057 0.0057 2.0057 -0.0057
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