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Question:

The annual yield‐to‐maturity, stated with a periodicity of 4, for a five‐year, zero‐coupon bond prices at 65 per 100 of par value is closest to:

A 8.71%.
Explaination

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r = 2.177%
More simply: N = 20; FV = 100; PV = –65; CPT I/Y; I/Y = 2.177%
2.177% x 4 = 8.71%