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The Per-Period Yield to Maturity of a Zero-Coupon Bond

Question 4

Multiple Choice

The per-period yield to maturity of a zero-coupon bond:


A) is the discount rate that makes the discounted value of its coupon payments equal to its current market price.
B) is the discount rate that makes the discounted value of its face amount equal to its par value.
C) is the discount rate that makes the discounted value of its coupon payments equal to its face value.
D) is the discount rate that makes the discounted value of its face amount equal to its current market price.

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