One-year zero coupon bond with a face value of $1000 is sellingat $981. What is...

One-year zero coupon bond with a face value of $1000 is selling at $981. What is the yield to maturity of this bond? State the answer as a number with 2 decimals without % sign. For example, 5.55 is a correct answer, while 5.55% or 0.055 are not correct.

Expert Solution

Answer:

Hence, the yield to maturity is 1.94 (percentage symbol omitted).

jeff jeffy answered 2 years ago

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