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What is the yield to maturity of a one-year zero-coupon bond with a $10,000 face value and a price of $9400
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What is the yield to maturity of a one-year zero-coupon bond with a $10,000 face value and a price of $9400

User Danny Cullen
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1 Answer

10 votes

Answer:

6.383%

Step-by-step explanation:

Calculation for the What is the yield to maturity

Using this formula

YTM=n√Face value/Bond price -1

Where,

n=one-year

Face value=10,000

Bond price=9,400

Let plug in the formula

YTM=1√10,000/9,400−1

YTM=1.06383-1

YTM=0.06383*100

YTM=6.383%

Therefore the yield to maturity will be 6.383%

User MLow
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3.8k points
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