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QUESTION
Five years ago you purchased a Zero coupon bond (principal value = $1,000) with a remaining maturity of 20 years and a price of 50%. Today you sell...
- Five years ago you purchased a Zero coupon bond (principal value = $1,000) with a remaining maturity of 20 years and a price of 50%. Today you sell the bond at a price of 65%. Therefore the YTM of the Zerobond today is ................ the YTM five years ago. (use semiannual compounding)
- A) less than B) equal to C) more than
