Question
1. I buy a zero-coupon bond with a face value of $10,000 and a maturity of 20 years. (a) If I want to make 8%
1. I buy a zero-coupon bond with a face value of $10,000 and a maturity of 20 years. (a) If I want to make 8% on my money, how much should I pay for the bond? $2,145.48 (b) If I pay $6,139.13 for the bond and hold it until it matures, what rate of return will I have made? 2.47% SHOW WORK
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The Oxford Handbook Of Pricing Management
Authors: Ozalp Ozer, Robert Phillips
1st Edition
0199543178, 978-0199543175
