Compute the yield to maturity for a zero coupon bond with a maturity of 15 years and a face value of $1000. The bond is selling for $463.54. (Assume annual discounting.) (Roumand enter as a percentage, e.g. 12.34% as 12.34)Answer:

The yield to maturity (YTM) for a zero-coupon bond is the annualized rate of return an investor…

Compute the yield to maturity for a zero coupon bond with a maturity of 15 years and face value of $1000. The bond is selling for $463.54. (Assume annual discounting.) (Roum and enter as a percentage, e.g. 12.34% as 12.34)

Compute the yield to maturity for a zero coupon bond with a maturity of 15 years and face value of $1000. The bond is selling for $463.54. (Assume annual discounting.) (Roum and enter as a percentage, e.g. 12.34% as 12.34)

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

Problem 1PS

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Question

Compute the yield to maturity for a zero coupon bond with a maturity of 15 years and a face value of $1000. The bond is selling for $463.54. (Assume annual discounting.) (Roum
and enter as a percentage, e.g. 12.34% as 12.34)
Answer:

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