Maturity (years)Price1$97.25$94 53591 835$87.53$09 23The above table shows the price per $100 face value of several risk-free, zero-coupon bonds. What is the yield to maturity of the four-year, zero-coupon, risk free bond shown?OA. 011%OB 2.00%OC. 144%OD 578 %

Yield to maturity of the 4 year zero coupon bond =(Face value /Current price )^( 1 /Year to…

Maturity (years) Price 2 504 53 $97.25 4 $09 23 5. 537 53 The above table shows the price per $100 face value of sever risk tree, zero-coupon bonds What is the yeild to maturity of the four year, zero-coupon, risk tree bond shown? OA 0.11% OB 2.00 % OC. 144% OD 578% 3. 59183

Maturity (years) Price 2 504 53 $97.25 4 $09 23 5. 537 53 The above table shows the price per $100 face value of sever risk tree, zero-coupon bonds What is the yeild to maturity of the four year, zero-coupon, risk tree bond shown? OA 0.11% OB 2.00 % OC. 144% OD 578% 3. 59183

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

Maturity (years)
Price
1
$97.25
$94 53
591 83
5
$87.53
$09 23
The above table shows the price per $100 face value of several risk-free, zero-coupon bonds. What is the yield to maturity of the four-year, zero-coupon, risk free bond shown?
OA. 011%
OB 2.00%
OC. 144%
OD 578 %

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