Zero-coupon bonds issued in 1999 are due in 2009.If they are sold at 55 percent of face value,the implied yield to maturity is (round the final percentage answer to 2 decimal places):

Name: Zero-coupon bonds issued in 1999 are due in 2009.If they are sold at 55 percent of face value,the implied yield to maturity is (round the final percentage answer to 2 decimal places):
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Quizplus · Accepted Answer

FV = PV × (1 + i)^ti = (FV/PV)^1/t - 1i = (1/0.55)^1/10 - 1i = 1.0616 - 1i = 0.0616i = 6.16%

Zero-Coupon Bonds Issued in 1999 Are Due in 2009