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Category > Accounting Posted 04 Jun 2017 My Price 3.00

Your firm has issued ten-year zero-coupon bonds with a $1,000 face value

 

Your firm has issued ten-year zero-coupon bonds with a $1,000 face value. If the bonds are currently selling for $514.87. What is the yield to maturity?
 
 

Answers

(8)
Status NEW Posted 04 Jun 2017 05:06 AM My Price 3.00

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file 1496554808-Answer.docx preview (45 words )
Y-----------our----------- fi-----------rm -----------has----------- is-----------sue-----------d t-----------en------------yea-----------r z-----------ero------------co-----------upo-----------n b-----------ond-----------s w-----------ith----------- a -----------$1,-----------000----------- fa-----------ce -----------val-----------ue.----------- If----------- th-----------e b-----------ond-----------s a-----------re -----------cur-----------ren-----------tly----------- se-----------lli-----------ng -----------for----------- $5-----------14.-----------87.----------- Wh-----------at -----------is -----------the----------- yi-----------eld----------- to----------- ma-----------tur-----------ity-----------? -----------Dec----------- 02----------- 20-----------15 -----------01:-----------03 -----------AM ----------- An-----------swe-----------r -----------Bon-----------d p-----------ric-----------e t-----------oda-----------y =----------- Fa-----------ce -----------val-----------ue -----------/ (-----------1 +----------- Yi-----------eld----------- to----------- Ma-----------tur-----------ity-----------)^Y-----------ear-----------s t-----------o M-----------atu-----------rit-----------y =-----------&am-----------p;g-----------t; -----------$51-----------4 -----------
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