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 + 11eaabab_c0a8_daa9_b90e_e5daa6863483_TB5536_11 = 11eaabab_c0a8_daaa_b90e_61b90799b203_TB5536_11 . 11eaabab_c0a8_daab_b90e_d9206f84f5ac_TB5536_11 = 2.85%

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