A zero coupon bond with a face value of $1,000 that matures in 8 years sells...

A zero coupon bond with a face value of $1,000 that matures in 8 years sells today for $556. What is the yield to maturity? (Use annual compounding.)

Solutions

Expert Solution

(1 + r)⁸ = 1.798561

1 + r = 1.0761

r = 0.0761 = 7.61%

jeff jeffy answered 1 year ago

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