The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value): The yield to maturity for the four-year zero-coupon bond is closest to ________.
A) 5.20%
B) 2.60%
C) 10.40%
D) 0.18%

Question

The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value):  The yield to maturity for the four-year zero-coupon bond is closest to ________.
A) 5.20% 
B) 2.60% 
C) 10.40% 
D) 0.18%

Quizplus · Accepted Answer

A) Yield = (100/price)^(1/ⁿ⁾ - 1 11ea84dc_f567_71a7_9a63_85523c4f984b_TB1316_11_TB1316_11

The Following Table Summarizes Prices of Various Default-Free Zero-Coupon Bonds