Answered: A zero-coupon bond has a par value of…

A zero-coupon bond has a par value of $1,000, costs $588.11 today, and matures in 16 years. Assume semi-annual compounding. What is the yield to maturity? A. 3.15% B. 3.35% C. 3.57% D. 3.83% E. 4.13%

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 7P: Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate,...

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Question

i need the answer quickly

A zero-coupon bond has a par value of $1,000,
costs $588.11 today, and matures in 16 years.
Assume semi-annual compounding. What is
the yield to maturity?
A. 3.15%
В. 3.35%
C. 3.57%
D. 3.83%
Е. 4.13%

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