Below are given the prices and maturities of zero-coupon bonds of the country X. Each bond...
Below are given the prices and maturities of zero-coupon bonds of the country X. Each bond has a face value of 1000.
|
Maturity (years) |
Current price |
|
1 |
952.38 |
|
2 |
942.60 |
|
3 |
928.60 |
What is the yield on the bond that matures in three years?
Please write an answer in decimals. For example, 12.3% would be
0.123.
Also, round your answer to the third decimal.
Homework Answers
yield on bond that matures in 3 years=(face value/price of 3
year bond)^(1/3)-1=(1000/928.60)^(1/3)-1=2.50%
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Below are given the prices and maturities of zero-coupon bonds
of the country X. Each bond...
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