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Zero-Coupon Bonds Were Issued in 2005

Question 14

Multiple Choice

Zero-coupon bonds were issued in 2005.If their implied yield to maturity is 5%,and the bonds will mature in 20 years,at what discount from the face value will they sell? (Do not round intermediate answers and round the final percentage answer to 2 decimal places)


A) 10%
B) 25.42%
C) 37.69%
D) cannot be determined, need more information

Correct Answer:

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