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 $529.30.
A) 6.57%
B) 8.45%
C) 4.16%
D) 10.23%
E) 12.17%

Name: 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 $529.30. A) 6.57% B) 8.45% C) 4.16% D) 10.23% E) 12.17%
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

Solve for i
1000 = 529.3(1 + i)¹⁰
i = (1000/529.3)¹/¹⁰ -1 = .0657

Calculate the Yield to Maturity of a Zero Coupon Bond