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Lisa [10]
3 years ago
5

Compute the yield to maturity of a $100 face value zero-coupon bond that matures in exactly one year and has a current market pr

ice of $98.50. (Round your final answer to the nearest hundredth of a percent.)
Business
1 answer:
Step2247 [10]3 years ago
5 0

Answer:

Yield to maturity is 1.51%

Explanation:

Zero Coupon rate does not offer any coupon payment and it is issued at deep discount value.

Face value = F = $100

Price = P = $98.50

Year to mature = n = 1 year

Yield to maturity = ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = ( $100 - $98.5 ) / 1 ] / [ ( $100 + $98.5 ) / 2 ]

Yield to maturity = $1.5 / 99.25

Yield to maturity = 0.0151

Yield to maturity = 1.51%

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Answer:

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Explanation:

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As we are asked for the foreman salary, wewill calcualte the Z for non cumulative, just the probability of a foreman to earn 1,100 or 900 dollars.

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Which of the following statement shows the financial position of a business entity as on date
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Answer:

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