What is its yield to maturity


Problem:

A zero-coupon bond with face value $1,000 and maturity of four years sells for $750.22.

Required:

Question 1: What is its yield to maturity?

Question 2: What will the yield to maturity be if the price falls to $734?

Note: Explain all calculation and formulas.

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Accounting Basics: What is its yield to maturity
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