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A 10-year zero coupon bonds issued by the Perth Treasury have a face value of $1000 and interest is compounded semi-annually. If similar bonds

A 10-year zero coupon bonds issued by the Perth Treasury have a face value of $1000 and interest is compounded semi-annually. If similar bonds in the market yield 11.32 per cent, what is the value of these bonds? (1 Mark for correct formula, 3 Marks for correct workings and 1 Mark for correct answer to equal a total of 5 Marks).

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