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    Investment Analysis and Portfolio Management Study Set 1
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    Exam 12: Bond Fundamentals and Valuation
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    Calculate the Yield to Maturity of a Zero-Coupon Bond with a Face
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Calculate the Yield to Maturity of a Zero-Coupon Bond with a Face

Question 11

Question 11

Multiple Choice

Calculate the yield to maturity of a zero-coupon bond with a face value of $1000, maturing in 10 years, and selling for a price of $628.72.


A) 4.18 percent
B) 4.75 percent
C) 6.29 percent
D) 8.23 percent
E) 9.54 percent

Correct Answer:

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