The current​ zero-coupon yield curve for​ risk-free bonds is as​ follows:   Maturity ​(years) 1 2 3 4 5 YTM 5.04% 5.48% 5.73% 5.94% 6.06%   What is the price per $100 face value of a​ four-year, zero-coupon,​ risk-free bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
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The current​ zero-coupon yield curve for​ risk-free bonds is as​ follows:
 
Maturity ​(years)
1
2
3
4
5
YTM
5.04%
5.48%
5.73%
5.94%
6.06%
 
What is the price per
$100
face value of a​ four-year, zero-coupon,​ risk-free bond?
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