The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. What is the yield to maturity on a 3-year zero-coupon bond
A)6.37%
B)9.00%
C)7.33%
D)10.00%
E)None of the options

Name: The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. What is the yield to maturity on a 3-year zero-coupon bond A)6.37% B)9.00% C)7.33% D)10.00% E)None of the options
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Question

The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000.  What is the yield to maturity on a 3-year zero-coupon bond
A)6.37% 
B)9.00% 
C)7.33% 
D)10.00% 
E)None of the options

Quizplus · Accepted Answer

(1,000/808.81)^1/3 - 1 = 7.33%.

The Following Is a List of Prices for Zero-Coupon Bonds