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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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