A zero-coupon bond matures in 15 years. At a market discount rate of 4.5% per year and

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A zero-coupon bond matures in 15 years. At a market discount rate of 4.5% per year and assuming annual compounding, the price of the bond per 100 of par value is closest to:

A. 51.30.

B. 51.67.

C. 71.62.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 04, 2023 11:10 PM

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A zero-coupon bond matures in 15 years. At a market discount rate of 4.5% per year and

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The correct answer is B 5167 A zerocoupon bond is a type of bond that does not pay interest pa...View the full answer

Fixed Income Analysis

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