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A Zero-Coupon Bond with a $1000 Face Value Has 7

Question 48

Multiple Choice

A zero-coupon bond with a $1000 face value has 7 years left until maturity.If its current price is $786,then the yield to maturity on this bond is approximately:


A) 3.5%
B) 1.27%
C) 1.03%
D) 0.035%
E) 7%

Correct Answer:

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