Compute what is the annual yield-to-maturity of the bond

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Problem 1: A one-year zero coupon bond costs $99.43$99.43 today. Exactly one year from today, it will pay $100. What is the annual yield-to-maturity of the bond? (I.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of $100 in one year?)

Option 1: 0.0057

Option 2: 1.0057

Option 3: 2.0057

Option 4: -0.0057

Reference no: EM132721441

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