Bond's Question please help asap exam coming up soon.?

Question

What is the price of a zero coupon bond which, when purchased,was priced to yield 12% p.a. The bond has a maturity of 10 years and a face value of $1000.

How would I find the YTM for this bond, because don't you need it to work out the present value (price of the bond).

Thanks,

Matt

Answer 1

I would go about like this.

Input these values in a Financial Calculator:

PV:  ~322 = [1000/(1.12)^10]

FV: 1000

N: 10

Compute: I =?

Hope it gives you the right answer.

All the best for your exam.