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Consider a Zero-Coupon Bond with a $1000 Face Value and Ten

Question 4

Multiple Choice

Consider a zero-coupon bond with a $1000 face value and ten years left until maturity.If the bond is currently trading for $459,then the yield to maturity on this bond is closest to:


A) 7.5%
B) 10.4%
C) 9.7%
D) 8.1%
E) 7.2%

Correct Answer:

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