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A corporation recently sold zero - coupon $ 1 1 0 0 bonds maturing in 4 years with an annual yield of 7 % .

A corporation recently sold zero
-
coupon $
1100
bonds maturing in
4
years with an annual yield of
7
%
.
Find the price.
[
Hint: The price is the present value of $
11004
years from now at the stated interest rate.

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