Hi, everyone. I have a problem about Fins 5513's quiz . The question is listed below:
A zero-coupon bond with a face value of $200 is maturing in three years. It trades for $161. What is its yield to maturity? Answer using three decimal points, e.g. 0.105 for 10.5%.
My formula is 161=200/(1+R)^3 And the answer is 0.07498≈7.5%.
This is a online quiz question. whatever I entered 7.5% or 7.4%, it always mentions that I submitted the wrong answer. My answer and the formula which I used should be right.
Can some one help me to solve this question? Thank you!
A zero-coupon bond with a face value of $200 is maturing in three years. It trades for $161. What is its yield to maturity? Answer using three decimal points, e.g. 0.105 for 10.5%.
My formula is 161=200/(1+R)^3 And the answer is 0.07498≈7.5%.
This is a online quiz question. whatever I entered 7.5% or 7.4%, it always mentions that I submitted the wrong answer. My answer and the formula which I used should be right.
Can some one help me to solve this question? Thank you!