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A corporation is planning to issue zero-coupon bonds with a par value of $1,000 and with a maturity of 30 years. Assuming investors demand a
A corporation is planning to issue zero-coupon bonds with a par value of $1,000 and with a maturity of 30 years. Assuming investors demand a 9.25% yield to maturity on the bonds, compounded semiannually, approximately how much should an investor pay for each bond?
A | $66.35 |
B | $70.36 |
C | $257.59 |
D | $857.43 |
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