Consider the Following $1,000-Par-Value Zero-Coupon Bonds The Yield to Maturity on Bond D Is
A) 10

Consider the following $1,000-par-value zero-coupon bonds: $\begin{array}{ccc}&\text { Years of } \\\text { Bond } & \text { Maturity } & \text { Price } \\\hline\text { A } & 1 & \$ 909.09 \\\text { B } & 2 & 811.62 \\\text { C } & 3 & 711.78 \\\text { D } & 4 & 635.52\end{array}$ The yield to maturity on bond D is

A) 10%.
B) 11%.
C) 12%.
D) 14%.
E) None of the options are correct.

Correct Answer:

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