01-13-2015, 02:04 AM
Bond yield is the IRR of the bond's cash flows, including coupon payments, purchase price and principal. Since this is a zero coupon bond, it's simply a case of discounting $1,000,000 back 10 years at 8%, which gives you $463,193. I'm not sure why the "answer" is slightly different, but it's likely due to some rounding differences somewhere.
CPA (WA), CFA Level III Candidate
Currently pursuing: ALM, Data Science - Harvard University, Cambridge, MA (12/48, on hold for CFA/life commitments)
MBA, Finance/Accounting - Indiana University, Bloomington, IN, 2015
BSBA, General Management - Thomas Edison State College, Trenton, NJ, 2012
Currently pursuing: ALM, Data Science - Harvard University, Cambridge, MA (12/48, on hold for CFA/life commitments)
MBA, Finance/Accounting - Indiana University, Bloomington, IN, 2015
BSBA, General Management - Thomas Edison State College, Trenton, NJ, 2012
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