The present value of a $1,000 par value, zero-coupon bond with a three-year maturity assuming an annual

Question:

The present value of a $1,000 par value, zero-coupon bond with a three-year maturity assuming an annual discount rate of 6% compounded semiannually is closest to

a. $837.48.

b. $839.62.

c. $943.40.

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