The present value of a $1000 discount bond with five years to maturity is $825. Calculate its yield-to-maturity. (Enter your answer in decimal form, up to three decimal places. Example: If your answer is 8.1%, enter it as 0.081) Answer:

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The present value of a $1000 discount bond with five years to maturity is $825. Calculate its yield-to-maturity.
(Enter your answer in decimal form, up to three decimal places. Example: If your answer is 8.1%, enter it as 0.081)
Answer:
Transcribed Image Text:The present value of a $1000 discount bond with five years to maturity is $825. Calculate its yield-to-maturity. (Enter your answer in decimal form, up to three decimal places. Example: If your answer is 8.1%, enter it as 0.081) Answer:
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