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    Contemporary Financial Management
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    Exam 5: The Time Value of Money
  5. Question
    A Zero Coupon Bond with a $1,000 Par Value Is
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A Zero Coupon Bond with a $1,000 Par Value Is

Question 72

Question 72

Multiple Choice

A zero coupon bond with a $1,000 par value is selling for $356 and matures in 12 years. What is the implied discount rate (yield to maturity) ?


A) 9%
B) 9.36%
C) 9.12%
D) 9.4%

Correct Answer:

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