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Homework answers / question archive / Calculate yield to maturity per annum of 6 years zero coupon government bond with a par value of $1,000 selling for $835
Calculate yield to maturity per annum of 6 years zero coupon government bond with a par value of $1,000 selling for $835.6.
Group of answer choices
2.5%
3.0%
3.2%
2.8%
Yield To Maturity=(Face Value/ Bond Price)^(1/Years To Maturity)−1
Here,
Face value= 1000
Bond price= 835.6
Years to maturity= 6
Put the values in the formula;
= (1000/ 835.6)^ (1/ 6)- 1
= 3.0%
