Eight years ago you purchased a 1000 30-year zero coupon


Eight years ago you purchased a $1,000 30-year zero coupon bond for $575. What was the annual YTM on that bond at that time using (a) annual compounding; and (b) semiannual compounding?

A. 1.86%; 1.85% B. 7.39%; 2.46% C. 2.46%; 7.39% D. 3.36%; 5.46%

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Financial Management: Eight years ago you purchased a 1000 30-year zero coupon
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