The above table shows the price per $100-face value bond of several risk-free, zero-coupon bonds. What is the yield to maturity of the two year, zero-coupon, risk-free bond shown?
A) 1.43%
B) 5.71%
C) 0.05%
D) 2.85%

Question

The above table shows the price per $100-face value bond of several risk-free, zero-coupon bonds. What is the yield to maturity of the two year, zero-coupon, risk-free bond shown?
A) 1.43% 
B) 5.71% 
C) 0.05% 
D) 2.85%

Quizplus · Accepted Answer

D) Calculate the discount rate that equates $100 to $94.53 in two years.
1 + 11ea84dc_f566_6027_9a63_290c00848bf1_TB1316_11_TB1316_11 = 11ea84dc_f566_6028_9a63_97f2c31739c7_TB1316_11_TB1316_11 . 11ea84dc_f566_6029_9a63_45b978989f2c_TB1316_11_TB1316_11 = 2.85%

The Above Table Shows the Price Per $100-Face Value Bond