Zero coupon bonds: Diane Carter is interested in buying a fiveyear zero coupon bond with a face

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Zero coupon bonds: Diane Carter is interested in buying a fiveyear zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 9 percent. Assume annual coupon payments. What is the current value of this bond?

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Fundamentals Of Corporate Finance

ISBN: 9781119795438

5th Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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