Question
$1,000 par value zero-coupon bonds (ignore liquidity premiums) Bond Years to Maturity Yield to Maturity A 1 1% B 2 2% C 3 3% D
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$1,000 par value zero-coupon bonds (ignore liquidity premiums)
Bond
Years to Maturity
Yield to Maturity
A
1
1%
B
2
2%
C
3
3%
D
4
4%
E
5
5%
Two year from now bond E should sell for ________ (to the nearest dollar).
A. $815.17
B. $965.15
C. $657.01
D. $502.42
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
