Final answer:
The yield to maturity of a discount bond with a face value of $20,000, selling for $15,000 and maturing in one year, is 33.33%.
Step-by-step explanation:
The yield to maturity of a discount bond selling for $15,000 with a face value of $20,000 that matures in one year can be calculated using the formula:
Yield to Maturity = (Face Value - Purchase Price) / Purchase Price.
In this case, it would be:
Yield to Maturity = ($20,000 - $15,000) / $15,000,
Yield to Maturity = $5,000 / $15,000,
Yield to Maturity = 0.3333 or 33.33%.
Thus, the yield to maturity of the bond is 33.33%.