A zero-coupon bond with a maturity of five years will mature in [...] periods.
Answer
10 6-month
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#reading-7-discounted-cashflows-applications
Question
A zero-coupon bond with a maturity of five years will mature in [...] periods.
Answer
?
Tags
#reading-7-discounted-cashflows-applications
Question
A zero-coupon bond with a maturity of five years will mature in [...] periods.
Answer
10 6-month
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Subject 5. Bond Equivalent Yield
Periodic bond yields for both straight and zero-coupon bonds are conventionally computed based on semi-annual periods, as U.S. bonds typically make two coupon payments per year. For example, a zero-coupon bond with a maturity of five years will mature in 10 6-month periods. The periodic yield for that bond, r, is indicated by the equation Price = Maturity value x (1 + r) -10 . This yield is an internal rate of return with semi-annual compounding. How do we
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