The prices of three zero-coupon bonds are provided in the table below. All three bonds have a face value of $1,000. The three bonds have three different terms to maturity. What is the yield on the bond with 3 years to maturity? $\begin{array}{|l|l|cc|}
\hline \text { Maturity } & \text {Price } & \text { Yield}\
\hline \text { 1 Year } & \$965.35 & \text {k}_1\
\hline \text {2 Year } & \$923.24& \text { k}_2\
\hline\text {3 Year } & \$885.25& \text {k}_3\
\hline
\end{array}$

Question

The prices of three zero-coupon bonds are provided in the table below. All three bonds have a face value of $1,000. The three bonds have three different terms to maturity. What is the yield on the bond with 3 years to maturity? $\begin{array}{|l|l|cc|}
 \hline \text { Maturity } & \text {Price  }  & \text {  Yield}\
\hline \text { 1 Year } & \$965.35 & \text {k}_1\
\hline \text {2 Year  } & \$923.24& \text { k}_2\
 \hline\text {3 Year } & \$885.25& \text {k}_3\
\hline 
\end{array}$

Quizplus · Accepted Answer

The Answer of The prices of three zero-coupon bonds are provided in the table below. All three bonds have a face value of $1,000. The three bonds have three different terms to maturity. What is the yield on the bond with 3 years to maturity? $\begin{array}{|l|l|cc|}
 \hline \text { Maturity } & \text {Price  }  & \text {  Yield}\
\hline \text { 1 Year } & \$965.35 & \text {k}_1\
\hline \text {2 Year  } & \$923.24& \text { k}_2\
 \hline\text {3 Year } & \$885.25& \text {k}_3\
\hline 
\end{array}$

The Prices of Three Zero-Coupon Bonds Are Provided in the Table