A zero coupon bond with a $1,000 par 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 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%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

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

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