9. What is the yield to maturity on a 4-year zero coupon bond with face value 100 and price equal to 95? A. 100/95 -1 B. 95/100 -1 C. (100/95)4-1 D. (100/95)0.25 -1

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 5P: Default Risk Premium A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate...
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9. What is the yield to maturity on a 4-year zero coupon bond with face value 100 and price equal to 95?
A. 100/95 -1
B. 95/100 -1
C. (100/95)-1
D. (100/95)0.25 -1
Transcribed Image Text:9. What is the yield to maturity on a 4-year zero coupon bond with face value 100 and price equal to 95? A. 100/95 -1 B. 95/100 -1 C. (100/95)-1 D. (100/95)0.25 -1
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