Maturity (years). 2 3 4 $89.23 5 $87.53 Price $94.53 $91.83 The above table shows the price per $100 face value of several risk-free, zero-coupon bonds. What is the yield to maturity of the four-year, zero-coupon, risk-free bond shown? OA. 0.11% OB. 2.89% OC. 1.44% OD. 5.78% 1 $97.25

Maturity (years). 2 3 4 $89.23 5 $87.53 Price $94.53 $91.83 The above table shows the price per $100 face value of several risk-free, zero-coupon bonds. What is the yield to maturity of the four-year, zero-coupon, risk-free bond shown? OA. 0.11% OB. 2.89% OC. 1.44% OD. 5.78% 1 $97.25

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

2
4
$89.23
5
$87.53
$94.53
The above table shows the price per $100 face value of several risk-free, zero-coupon bonds. What is the yield to maturity of the four-year, zero-coupon, risk-free bond shown?
Maturity (years).
Price
OA. 0.11%
OB. 2.89%
OC. 1.44%
OD. 5.78%
1
$97.25
3
$91.83
C...

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Problem Suppose the following zero-coupon bonds are trading at the prices shown below per $100 face value. ● ● Determine the corresponding yield to maturity for each bond. Maturity 1 year 2 years 3 years 4 years Price $96.62 $92.45 $87.63 $83.06
Maturity (years) Price 2.83% 5.79% The above table shows the price per $100-face value bond of several risk-free, zero-coupon bonds. What is the yield to maturity of the four-year, zero- coupon, risk-free bond shown? 2.85% 12.07% 1 $97.25 2.89% 3 2 $94.53 $91.83 5 4 $89.23 $87.53
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* Assignment 3 i Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 248 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Price (%) 80.36 96.95 135.22 Complete this question by entering your answers in the tabs below. Required A Bond Coupon (%) 2 4 8 Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. YTM % % % Saved 22255 35445
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