Business Studies, asked by adnansamad789, 4 months ago

A zero_coupon,$1,000- par_value bond is currently selling for $312 and matures in exactly 10 years​

Answers

Answered by viramrajbhar22
4

Explanation:

A zero-coupon, $1,000-par-value bond is currently selling for $312 and matures in exactly 10 years.

a. What is the implied market-determined semiannual discount rate (i.e., semiannual yield to maturity) on this bond? (Remember, the bond pricing convention in the United States is to use semiannual compounding – even with a zero-coupon bond.)

b. Using your answer to Part (a), what is the bond’s (i) (nominal annual) yield to maturity? (ii) (effective annual) yield to maturity?

Answered by sadiakhan77
2

Answer:

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