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8 . 6 Zero coupon bonds: Diane Carter is interested in buying a five - year zero - coupon bond with a face value of

8.6

Zero coupon bonds: Diane Carter is interested in buying a five

-

year 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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