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What is the yield to maturity of a​ one-year, risk-free,​ zero-coupon bond with a $ 10 comma 000 face value and a price of $ 9 comma 800 when​ released?

Respuesta :

jepessoa

Answer:

2.04%

Explanation:

yield to maturity of a zero coupon bond = (face value / market value)¹/ⁿ - 1

YTM = ($10,000 / $9,800)¹/¹ - 1 = 0.0204 = 2.04%

The yield to maturity is the expected return (yield) that a bondholder should receive after holding the bond until maturity. Generally risk free bonds have a very low YTM, and as risk increases, so does the bond's yield.

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