Maturity (years) Price 2 $94.53 3 $91.83 4 $89.23 $97.25 $87.53 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? O A. 5.78% O B. 0.11% C. 1.44% O D. 2.89%
Maturity (years) Price 2 $94.53 3 $91.83 4 $89.23 $97.25 $87.53 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? O A. 5.78% O B. 0.11% C. 1.44% O D. 2.89%
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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
Transcribed Image Text:Maturity (years)_
Price
1.
$97.25
2
$94.53
3
$91.83
4
$89.23
$87.53
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?
...
O A. 5.78%
O B. 0.11%
O C. 1.44%
D. 2.89%
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