Question about 0 coupon bond. Pls help!
Here is a question from the Qbank:
What is the yield to maturity (YTM) of a 20-year, U.S. zero-coupon bond selling for $300?
Your answer: B was correct!
N = 40; PV = 300; FV = 1,000; CPT → I = 3.055 × 2 = 6.11.
I guessed it right, but my question is: why the N equals to 40? How can I tell? Are all 0 coupon bonds semi-annual or something?
Thx! |