What is the bond's Yield to Maturity?

Business & Finance
Tutor: None Selected Time limit: 1 Day

Filkins Farm Equipment's five-year zero coupon bond is currently selling for $621.  The bond's maturity value is $1000 bond.  What is the bond's yield to maturity (YTM? 

Apr 2nd, 2015

yeild to maturity =

621 = 1000/(1+r)^5

solving for r we get yield to maturity    

Apr 2nd, 2015

so would my answer here be $9.9972?

Apr 2nd, 2015

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