A zero coupon bond with a $1,000 par value (future 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%

Name: A zero coupon bond with a $1,000 par value (future 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%
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Quizplus · Accepted Answer

PVIF = $356/$1000 = 0.356;or 9% from Table II

A Zero Coupon Bond with a $1,000 Par Value (Future