What would the yield to maturity be on a four-year zero coupon bond purchased today?
A)5.75%
B)6.30%
C)5.65%
D)5.25%
E)none of the above.

Name: What would the yield to maturity be on a four-year zero coupon bond purchased today? A)5.75% B)6.30% C)5.65% D)5.25% E)none of the above.
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Question

Quizplus · Accepted Answer

The correct answer is A because the yield to maturity on a zero coupon bond is equal to the annual rate of return, which is 5.75%.

What Would the Yield to Maturity Be on a Four-Year