The present value of a $1000 discount bond with five years to maturity is $825. Calculate its yield-to-maturity. (Enter your answer in decimal form, up to three decimal places. Example: If your answer is 8.1%, enter it as 0.081) Answer:

The present value of a $1000 discount bond with five years to maturity is $825. Calculate its yield-to-maturity. (Enter your answer in decimal form, up to three decimal places. Example: If your answer is 8.1%, enter it as 0.081) Answer:

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.2IP

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Question

The present value of a $1000 discount bond with five years to maturity is $825. Calculate its yield-to-maturity.
(Enter your answer in decimal form, up to three decimal places. Example: If your answer is 8.1%, enter it as 0.081)
Answer:

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