Question
What is the yield to maturity on a $\$ 10,000$ -face-value discount bond maturing in one year that sells for $\$ 9,523.81 ?$
Step 1
The present value (PV) is the price the bond sells for, which is $\$9523.81$. The face value (FV) is $\$10,000$. The time to maturity (n) is 1 year. The yield to maturity (i) is what we are trying to find. Show more…
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