The above table shows the yields to maturity on a number of three-year, zero-coupon securities. What is the price per $100 of the face value of a three-year, zero-coupon corporate bond with a BBB rating?
A) $99.06
B) $115.57
C) $82.55
D) $66.04

Question

The above table shows the yields to maturity on a number of three-year, zero-coupon securities. What is the price per $100 of the face value of a three-year, zero-coupon corporate bond with a BBB rating?
A) $99.06 
B) $115.57 
C) $82.55 
D) $66.04

Quizplus · Accepted Answer

C) Calculate the PV of the bond with FV = $100, 11ea84dc_f56b_8f86_9a63_df8397b400a2_TB1316_11_TB1316_11 and 11ea84dc_f56b_8f87_9a63_9b1e5dbfc85c_TB1316_11_TB1316_11 11ea84dc_f56b_8f88_9a63_0b3b33f8e913_TB1316_11_TB1316_11

The Above Table Shows the Yields to Maturity on a Number