The current market price of a 10-year zero- coupon bond is $1,234.567. The face value of the bond is $2,000.00. Then, what is the continuous compounded yield per annum (annualized yield compounded continuously) on this bond? [If an investor holds the bond till its maturity, then this yield is also known as the holding period return.] Group of answer choices 0.049425 0.49425 0.4824 -0.02107 -0.2107 0.04824 Need more information

The current market price of a 10-year zero- coupon bond is $1,234.567. The face value of the bond is $2,000.00. Then, what is the continuous compounded yield per annum (annualized yield compounded continuously) on this bond? [If an investor holds the bond till its maturity, then this yield is also known as the holding period return.] Group of answer choices 0.049425 0.49425 0.4824 -0.02107 -0.2107 0.04824 Need more information

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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