Atlantis Fisheries issues zero coupon bonds on the market at a price of $319 per
ID: 2709048 • Letter: A
Question
Atlantis Fisheries issues zero coupon bonds on the market at a price of $319 per bond. Each bond has a face value of $1,000 payable at maturity in 11 years. What is the yield to maturity for these bonds?(Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Atlantis Fisheries issues zero coupon bonds on the market at a price of $319 per bond. Each bond has a face value of $1,000 payable at maturity in 11 years. What is the yield to maturity for these bonds?(Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Explanation / Answer
Yield to maturity = Interest + Face Value - Price / N/ Face value + Price /2
= 0 + 1000-319/11/1000+319/2
= 681/11/1319/2
= 61/660 i.e 9.2424%
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