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# 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:

Question:

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%

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