55. A zero coupon bond with a par value of $1,000 is priced at $651.38. The bond matures six years from today. Using semiannual compounding, the bond's yield to maturity is closest to:

Select exactly 1 answers from the following:
A. 6.90%. B. 7.02%. C. 7.27%. D. 7.41%.
答案和详解如下！
Feedback: Correct answer: C

Fixed Income Analysis for the Chartered Financial Analyst Program, 2nd edition, Frank J. Fabozzi (Frank J. Fabozzi Associates, 2004), pp. 137

2006 Modular Level I, Vol. IV, pp. 154

Study Session 15-66-d

compute the value of a zero-coupon bond, explain the arbitrage-free valuation approach and the market process that forces the price of a bond toward its arbitrage-free value, determine whether a bond is undervalued or overvalued, given the bond抯 cash flows, appropriate spot rates or yield to maturity, and current market price, explain how a dealer could generate an arbitrage profit

Present value = $651.38

Future value = $1,000

n = 12

i = 3.6368 x 2 = 7.27%.

Correct answer: c

sfd