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The following table summarizes prices of various​ default-free zero-coupon bonds​ (expressed as a percentage of face​...

The following table summarizes prices of various​ default-free zero-coupon bonds​ (expressed as a percentage of face​ value):

Maturity​ (years)

1

2

3

4

5

Price​ (per $100 face​ value)

94.52

89.68

85.40

81.65

78.35

The yield to maturity for the​ five-year zero-coupon bond is closest​ to:

A. 5.0%

B. ​5.8%

C. ​5.4%

D. ​5.6%

E. ​6.0%

Solutions

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