What is ytm of a 5-year zero-bond that costs 1000 today and


1. What is the YTM of a 5-year zero-bond that costs $1,000 today and promises to pay $1,611?

2. Compute the yield-to-maturity of a two-year bond that costs $25,000 today and pays $1,000 at the end of each of the 2 years. At the end of the second year, it also repays $25,000. What is the bond's YTM?

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Financial Management: What is ytm of a 5-year zero-bond that costs 1000 today and
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