Suppose a Government of Canada zero-coupon bond can be purchased for $3816.31 at the end of 2005. At maturity, in seven years, the investor receives $6987.50. What is the yield to maturity on this zero-coupon bond?

Suppose a Government of Canada zero-coupon bond can be purchased for $3816.31 at the end of 2005. At maturity, in seven years, the investor receives $6987.50. What is the yield to maturity on this zero-coupon bond?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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