The current market price of a 10-year zero- coupon bond is $1,234.567. The face value of the bond is $2,000.00. Then, what is the continuous compounded yield per annum (annualized yield compounded continuously) on this bond? [If an investor holds the bond till its maturity, then this yield is also known as the holding period return.] Group of answer choices 0.049425 0.49425 0.4824 -0.02107 -0.2107 0.04824 Need more information
The current market price of a 10-year zero- coupon bond is $1,234.567. The face value of the bond is $2,000.00. Then, what is the continuous compounded yield per annum (annualized yield compounded continuously) on this bond? [If an investor holds the bond till its maturity, then this yield is also known as the holding period return.] Group of answer choices 0.049425 0.49425 0.4824 -0.02107 -0.2107 0.04824 Need more information
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The current market price of a 10-year zero-
coupon bond is $1,234.567. The face value of
the bond is $2,000.00. Then, what is the
continuous compounded yield per annum
(annualized yield compounded continuously)
on this bond? [If an investor holds the bond
till its maturity, then this yield is also known as
the holding period return.]
Group of answer choices
0.049425
0.49425
0.4824
-0.02107
-0.2107
0.04824
Need more information](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad6fed59-52bb-477b-a2bf-d8637f5c170c%2Fba88f096-c2c5-4bdc-b5d4-80faf724b8a0%2Fdtg9vlg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The current market price of a 10-year zero-
coupon bond is $1,234.567. The face value of
the bond is $2,000.00. Then, what is the
continuous compounded yield per annum
(annualized yield compounded continuously)
on this bond? [If an investor holds the bond
till its maturity, then this yield is also known as
the holding period return.]
Group of answer choices
0.049425
0.49425
0.4824
-0.02107
-0.2107
0.04824
Need more information
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