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13) A zero-coupon bond is a bond that is sold now at a discount and pays its face value when it matures. Suppose that when

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13) A zero-coupon bond is a bond that is sold now at a discount and pays its face value when it matures. Suppose that when a child is born, her grandparents decide to purchase a zero-coupon bond that will pay $25,000 for her college education when it matures 18 years later. If the bond pays 5% compounded continuously, what should they pay for the bond? (i.c. what is the initial value of the investment)

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