A zerocoupon security pays $100,000 in 8 years. What is the current price of this security if
Question:
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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Sure lets start by calculating the current price of the zerocoupon security at the two given interes...View the full answer
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Somshukla Chakraborty
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I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
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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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