---
title: "Zero-coupon bond Yield (LO16-2) Assume a zero-coupon bond that sells for $423 and will mature in 10 years at $1,200"
description: "**Zero-coupon bond Yield (LO16-2)**Assume a zero-coupon bond that sells for $423 and will mature in 10 years at $1,200. What is the effective yield to maturity? (Compute PV~IF and go to Appendix B for the 10-year figure to find the…"
url: "https://www.coursequizpro.com/docs/zero-coupon-bond-yield-lo16-2-assume-a-zero-coupon-bond-that-sells-for-423-and-will-mature-in-10-years-at-1200/"
updated: "2024-03-08"
---

# Zero-coupon bond Yield (LO16-2) Assume a zero-coupon bond that sells for $423 and will mature in 10 years at $1,200

**Zero-coupon bond Yield (LO16-2)**Assume a zero-coupon bond that sells for $423 and will mature in 10 years at $1,200. What is the effective yield to maturity? (Compute PV~IF and go to Appendix B for the 10-year figure to find the answer, or compute FV~IF and go to Appendix A for the 10-year figure to find the answer. Either approach will work.)

Using Appendix B when the yield to maturity is 11

|   | **N** |   |   | **I/Y** |   |   | **PV** |   |   | **PMT** |   |   | **FV** |   |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 10 | 11 | x | 0 | 1,200 |  |  |  |  |  |  |  |  |  |  |

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