A zero coupon bond with a face value of $20,000 matures in 10 years. What should the

Question:

A zero bond with a of $20,000 matures in 10 years. What should the bond be sold for now if its rate of return is to be 4.194% compounded annually?
Refer to zero bonds. A zero bond is a bond that is sold now at a discount and will pay its at some time in the future when it matures no interest payments are made.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...