Use the figure for the question(s) below.
-A risk-free, zero-coupon bond with a $5000 face value has 15 years to maturity. The bond currently trades at $3750. What is the yield to maturity of this bond?
A) 1.936%
B) 0.968%
C) 62.500%
D) 75.000%

Question

Use the figure for the question(s) below. 
-A risk-free, zero-coupon bond with a $5000 face value has 15 years to maturity. The bond currently trades at $3750. What is the yield to maturity of this bond?
A) 1.936% 
B) 0.968% 
C) 62.500% 
D) 75.000%

Quizplus · Accepted Answer

A) YTM = 11ea84dc_f566_d55f_9a63_959db4376a06_TB1316_11_TB1316_11 - 1; YTM = 11ea84dc_f566_d560_9a63_45e049599c61_TB1316_11_TB1316_11 - 1 = 1.936%

Use the Figure for the Question(s) Below