A zerocoupon security pays $100,000 in 8 years. What is the current price of this security if
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A zero‐coupon security pays $100,000 in 8 years. What is the current price of this security if the current interest rate is 4 percent? The current interest rate is 7 percent? What is the percent reduction in price caused by this 3‐percentagepoint increase in interest rates?
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Related Book For
Financial Markets Banking And Monetary Policy
ISBN: 9781118872239
1st Edition
Authors: Thomas D. Simpson
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