I need help in figuring out the attached finance problem:
Bond Pricing: Fill in the table below for the following zero-coupon bonds. The face value of each bond is $1,000.
See attached file for full problem description.© BrainMass Inc. brainmass.com March 4, 2021, 6:00 pm ad1c9bdddf
First scenario (calculating yield to maturity)
$1,000 = $300 * (1 + YTM)^30
YTM = (1000/300)^(1/30) - 1 = 0.0409 ...
This solution looks at bond pricing, maturity and yield to maturity for zero-coupon bonds.